Despite an earlier report from IGN Germany, it appears Deep Silver is not currently working on Dead Island 2 with Yager Development; in fact, they're not working on it at all. The initial story claimed an ad had surfaced seeking a lead artist and art director to begin work on the sequel following the completion of Spec Ops: The Line, which Yager is currently developing. However, in a subsequent statement to IGN, Guido Eickmeyer, Development Director of Deep Silver says:
I'm probably not alone in having erroneously assumed that Dead Island 2 was already in the works. I for one would love a sequel. Especially if isn't called Dead World. Despite its initial launch issues, it went on to sell 3 million, so clearly the fan base is there. I'd really like to see them deliver on some of the emotional elements by creating a more cohesive story line. Between that and an improved menu system, I think the series could be primed for perfection. I really hope it ultimately gets a chance to work these issues out in a follow up.