Alan Wake 2 is reportedly planned for development at Control studio Remedy Entertainment.
In a recent Twitch stream (opens in new tab), reporter Jeff Grubb told viewers that "I've heard that Remedy is going to be making Alan Wake 2," with Epic Games acting as the project's publisher. Grubb went on to say that the game "should kind of be the follow-up that fans of that series want," but that there's little extra information and no word on an official announcement.
In 2019, Remedy obtained the publishing rights to the franchise from Microsoft, opening the door for new projects, but the studio said that its focus at that time was on Control. Now that development on that game appears to have come to an end - complete with an Alan Wake-related expansion - it's possible that a full game could be next in line.
Remedy has already confirmed that it's working on a new game set in the same universe as both Control and Alan Wake, but that could be an entirely new IP. Meanwhile, Epic announced back in March 2020 that it would be releasing new games from Remedy, as well as titles from Inside developer Playdead and The Last Guardian studio Gen Design.
The original Alan Wake released in 2010 on the Xbox 360, and established itself as something of a cult hit, but was never offered a fully-fledged sequel - a standalone spin-off released for Xbox Live Arcade in 2012, but a potential sequel was scrapped, with the idea eventually being redeveloped into Quantum Break.
With no official word from Remedy or Epic, it's worth remembering that even if there are plans for a long-awaited sequel, they may never see the light of day. That said, the success of Control and the enduring interest in Alan Wake could make this a great time for a return to Bright Falls.