Posting this in 2023 means that there's even more problems in the way for a sequel since you've elaborated on enough to begin with. A second game has always been possible, but unlikely - and, unfortunately, it still seems just as unlikely.

Again, I'd LOVE for them to make a new game, but nothing we've seen so far really strongly hints at it. Sony's trademark of Sunset Overdrive isn't indicative of any intent to create new content, it's just that the old trademark expired and they needed to renew it if they wanted to keep ownership of the IP. We'd all love for Yuri and the team to get back on Sunset Overdrive (and they've stated they'd love it too), but that doesn't mean it'll happen. Given the relatively poor sales of Sunset Overdrive, the sky-high sales of Spider-Man (and their stated aspirations to become the video game equivalent to the Marvel Cinematic Universe), AND the Ratchet & Clank series being developed again, it's unlikely that Insomniac has the time/team/resources to put towards another Sunset Overdrive - even though everyone involved in the project LOVED it. We now know that they also had a Ratchet & Clank in the works. the one that launched a multibillion dollar franchise). When the interview came out it seemed like Spider-Man was their priority, and they even said they wanted Spider-Man to be 'like the Iron Man of video games' (i.e.

Sony's acquisition of Insomniac is great, BUT it probably means that Insomniac won't do a Sunset Overdrive 2 anytime soon - because Sony immediately put them to work on Spider-Man, and - when asked about the possibility of a Sunset Overdrive 2 - outright said that they weren't planning on it (at the time), because they had 'other priorities'. Insomniac loves the game, and has said repeatedly that they'd jump at the chance to do a 2nd, but that they needed a publisher to partner with.

Xbox didn't commission a 2nd one because of poor sales (which was their fault, they launched it at the WORST time, when tons of other established IPs were coming out with their new flagship games, AND they did a horrible job marketing the game).

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