Following up on the commercial success of DJ Hero, it comes as no surprise that DJ Hero 2 is in fact in production. The game was confirmed after DJ Shadow announced he was working on the project.
The information was divulged in an interview with BBC Radio 1 DJ Zane Lowe, as DJ Shadow talked about his experience with DJ Hero and followed up that he was working on a second installment of the game.
There's no official word from Activision about this yet though, so take this information however you want. However, it's not the first time DJ Hero 2 has been mentioned.