Absolutely not.
When ever a company looks at a project, they have to evaluate the cost and the benefit. The benefit has to be greater than the cost for the project to even be considered. The resources needed to make and launch an MMO are pretty huge, it takes a lot of developers and a lot of work - and most MMOs launch 2-3 months before they're finished, so the games always need a hell of a lot of post-launch work before they even start with regular tweaks and free content updates. In short, the cost is huge.
And what's the benefit? While the unit sales revenue is great, MMOs are all about monthy fees. That means subscribers. Who are these WoW2 subscribers going to be? WoW1 subscribers is who they're going to be. And how many of them? There is nothing concrete to suggest that a significant percentage of the WoW community would migrate, but at any rate, the end result is twice the resources (working on both WoW and WoW2) for a roughly equal subscriber base.
What is in it for Blizzard? They would have to put in years of work, and even if every single WoW player moved to WoW2, the revenue from sales wouldn't cover three months of WoW subcriber income. So why bother? WoW's popularity is still growing. So why bother?
And you also have to recognise that part of WoW's popularity is that it uses simple graphics, that almost anyone can run it. Newer graphics means steeper hardware requirements means fewer people able to play it.
No. There is zero chance of a replacement/competitive product from Blizzard in the next 4-5 years, and perhaps long after that. What will likely happen is WoW will just get a graphics update. They could rework most of the textures and remake the character models, and add it in with an expansion or offer it free through patches. Using the old or new visuals could be an optional thing (EverQuest did it, so WoW can) so it wouldn't be a barrier for people with lower end machines.
But no, no sequel. Absolutely not. Expect a new expansion every 12-18 months, though.
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