Level 5 are rumored to be working on a second PS3 project for Sony in addition to White Knight Story. Italian games magazine PSMania reports that Dark Cloud 3 is also in development by the Japanese company, using a new "open technology" engine code-named Kumo.
To this day, Dark Cloud 2 remains one of the PS2's best action RPG offerings, so a sequel would obviously be a very welcome addition to PS3's library. According to PSMania, said sequel will supposedly hit Japan in March '09. We'll believe it when we see it – as in actual screenshots – in Famitsu.
[Via PS3 Fanboy]