Sonic the Hedgehog 4: Episode 2 is aiming to set right some of the fan complaints from the first episode. We're not sure yet whether Sonic Team will deliver on that goal, but if it does, it might just quit while it's ahead.
Digital Spy reports that Sega has no plans to release another episode of Sonic 4 after Episode 2. "We are looking forward to hearing the feedback from the users for Episode 2, but we are currently not planning to release another episode," said producer Takashi Iizuka. "We just want to see how the users accept this episode."
That doesn't necessarily mean that we'll never see an Episode 3. Sega could be waiting until it has critical feedback and sales figures before deciding to pursue another one. Given that Episode 2 was already pushed back in favor of Sonic Generations, it wouldn't be the first time Sega held off on a Sonic 4 episode.
Shacknews has contacted Sega regarding the report, and will update as more information becomes available.
Update 3/14 - Sega has issued the following statement:
Sonic the Hedgehog is the most important brand in SEGA's library, and we're always working on creating new and engaging experiences for everyone's favorite blue hedgehog. Right now we are completely focused on Sonic The Hedgehog 4 Episode II, and while we can't discuss the future of the series, we are excited about what other adventures the Sonic storyline may hold.