That's right folks.

http://www.freedomplanet2.com/

There will be a bunch of new characters, Torque and Lord Brevon won't be in this installment it seems, and this installment will focus on Avalice itself rather than Brevon's invasion of Avalice. The characters will grow up a tiny weeny bit (read: Lilac will change attires completely, Carol looks more muscular and Milla more girly), the engine will be in Unity and developed by Taxman who made the Sonic CD port as well as the Android ports for Sonic 1 and 2 (but Unity?! Damn), and will feature a completely new set of sprites and content. The original gameplay will be retained with blocking and reviving added in. Reviving will take away one of your 1-ups to restore a part of your health and revive you where you were knocked down, otherwise you get knocked back to the past checkpoint, etc, etc, etc, etc, etc.

The villain seems to be not Brevon, but Merga, another water dragon. If you're wondering who the other water dragon is, look no further than Lilac. YES, she's a water dragon that drowns in the water no differently than Carol or Milla.