i dont think, to this point, there is any info. if i were you i would wait until e3 this july. Its just rumored to be online to this point. (and it will probably be online)
The first one was great. I would love to play another one. I did hear about Ubisoft advertising for a programmer "to work on online functionality" for a project a while back. The advert came from the guys who developed Red Steel so lets hope that they are working on the second one with online functionality.
whats wrong w/ Red steel besides the controls? are they really that bad :? and whats bad about them? Red steel 2 would be cool online since, as far as i can tell, the major problem w/ it is the controls learning curve which could be fixed