Probably. And it looks like it's set to get a sequel in Japan this Fall, according to comments made by Dengeki magazine on their podcast.
There's still no mention of a European release for the original Demon's Souls, which has gone on to become something of a sleeper hit in the US since Atlus ported it late last year.
A Demon's Souls 2 would presumably whip that niche audience into a mild frenzy.
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