Realtime Worlds honcho Colin MacDonald confirmed the studio is in "ongoing discussions" with Microsoft about the possibility of Crackdown 2. In a statement sent to VG247, MacDonald responded to rumors that a sequel is currently in development by Ruffian games, a new studio that allegedly has several former Realtime Worlds staffers from the Crackdown development team.
The statement from MacDonald relays that about "five or six" ex-Realtime Worlds staff are employed by Ruffian and he doubts that Microsoft would harm its "otherwise fruitful existing development relationship" by funding a Crackdown sequel with a startup on RTW's doorstep. We'll have to wait and see what happens, but if Ruffian does develop Crackdown 2, it sounds like Realtime Worlds won't be too happy.