Namco has confirmed that Katamari Damacy 2 is indeed in development. It was announced as part of an investor report on an official Namco website. The game is tentatively set to release in Japan sometime in 2005.

Katamari Damacy is a quirky and unique puzzle game that can perhaps be best described as a "snowball simulator". Katamari Damacy was a hit in its native Japan, and became a cult success in the US, thanks to generally good reviews and a budget price. While no solid gameplay details could be confirmed, it is likely that Katamari Damacy 2 will feature the same actions for "star creation" that the first game had.