Sonic Mania 2 Is Said to Have Been Scrapped Internally at Sega
In a recent blog by a video game industry insider that goes by the name Zippo, it was said that Sega had scrapped plans for a Sonic Mania sequel internally in the years since the first game's release. Zippo explained that the reason for this seems to have been due to a clash of some sort between Sega and Evening Star Studios. The blog in question didn't get into too many specifics about what happened here, but it did state that Sega of America was the division of Sega that proved to be the problem. Zippo claimed that Sega of America management was "extremely unreasonable", leading to a "break up" between the publisher and Evening Star.
Within the past month, Evening Star has gone on to reveal that it is now working on a wholly original "3D action platformer", which all but confirms that the studio likely isn't making Sonic Mania 2 at this point in time. And while we might never know all of the specifics about what happened between those at Sega and Evening Star, it's absolutely a bummer that the two entities seemingly won't be working together again on the highly-requested sequel.
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Source: https://comicbook.com/gaming/news/sonic-mania-2-sequel-scrapped-at-sega-report/
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