Videogaming24/7 translated a piece from JeuxVideo*, which states that Ubisoft's Michel Ancel allegedly confirmed Beyond Good & Evil 2 has been in pre-production for the last year. Apparently, 10-12 people have been working on the project, but the Ubisoft suits aren't sure whether to move forward.
Beyond Good & Evil has become the stuff of industry folklore at this point. A great game that just released at the wrong time and suffered terribly at retail for it. Even if this sequel rumor is true, it would still be years away from seeing release (sad face), but at least we'd eventually get to hang with Jade, Pey'J and Segundo once again.
*Internet cookies for the person that can give us a proper translation of the French story.