Although there isn't much yet to go on, it looks like Project Hell, as the name suggests, won't stray far from Dead Island's bloodied roots. The team's opening post says that they prefer "breaking through hordes of undead minions" over stuff with "unicorns and fairies." The post also notes the game will use some of Dead Island's technology.
The announcement follows the news earlier this month that Dead Island shipped 4 million copies worldwide. Techland is also working on the next installment in that series, Riptide, which is reportedly set to debut at PAX Prime this weekend.