Beyond Good and Evil 2 in production?
According to Joystiq, which is in turn referencing Cubed3, a sequel to Beyond Good and Evil is in the works.

Due for release in 2007 on all next-generation consoles, it will undoubtly continue directly where the original left off if this turns out to be true. As those who played it know, Beyond Good and Evil falls into the “one of the best games in history” category, alongside the likes of Grim Fandango, Monkey Island and various other classics.
Sadly, like many excellent games in recent years (such as Psychonauts), it failed to sell particularly well, thus calling off all immediate plans for the planned trilogy to continue — kind of like Advent Rising, except that was supposed to be a bit poo. Still, the creator has always said he’d be interested in doing a sequel, so maybe his work in delivering King Kong to the masses earned him this chance.

If you haven’t played Beyond Good and Evil yet, I’m going to say one thing: go out and do so or you will be missing out to a degree that I simply cannot put into words — seriously. Drop all preconceptions, and just go play it. I cannot stress this enough. It even still looks pretty, especially on the more powerful pair of machines.
Anyway, considering that the Revolution will also be with us before long, it looks like 2007 is going to be a very pleasant year for gaming. I’m not sure what PC titles are on the distant horizon, although I’m sure we can expect S.T.A.L.K.E.R. to end up slipping into there.
Update: Now at the end of 2007, it’s become pretty clear that this was just a false rumour. Hopefully nobody got too excited, and I guess we’ll just have to continue hoping that the trilogy one day gets its chance. I’m not holding much hope though, admittedly.
Update #2: Or perhaps not! See my new May 2008 post regarding Beyond Good and Evil 2.

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