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In a thread on the Sega Forums, Sonic 4 brand manager Ken Balough has dropped some info regarding the second episode of the title, saying that Sega of America and Sega of Europe are collaborating on the title, and that Sonic the Hedgehog 4: Episode 1 did commercially well enough for the company that they now know how many episodes they are going to do for Sonic the Hedgehog 4, though he didn't say how many they had decided on.
He also responded to the feedback of Episode 1, saying that some elements of the game could've been better, and that these issues will be adressed in the upcoming Episode 2.
There was no specification about when it'll be released or when we'll start seeing footage of it. Sonic the Hedgehog 4: Episode 1 released last October for PSN, XBLA and WiiWare.
source
He also responded to the feedback of Episode 1, saying that some elements of the game could've been better, and that these issues will be adressed in the upcoming Episode 2.
There was no specification about when it'll be released or when we'll start seeing footage of it. Sonic the Hedgehog 4: Episode 1 released last October for PSN, XBLA and WiiWare.
source