i just found this and it was posted on the 7th so i don't know if you guys know about this yet..
enjoy..
Naruto Hero 2 on the way
A sequel to Narutimate Hero is bound for the PS2; developer also hints at new RPG.
TOKYO--Game developer CyberConnect2 is working on a sequel to its Naruto fighting game. That news was released on the developer's Web site as well as in the popular Japanese weekly, Jump.
Currently titled Narutimate Hero 2, the sequel will be released on the PlayStation 2. Details on the title are scarce at the moment, but it's known that an upgraded game system and cel-shading techniques (as was featured in the original Narutimate Hero) will be employed. Also, Narutimate Hero 2 will feature a number of new characters, including ninja master Jiraiya and three young ninjas: Shikamaru, Chouji, and Ino.
Naruto: Narutimate Hero 2 is scheduled for release in the fall of 2004. No retail price has been announced.
CyberConnect2 also confirmed that a new RPG is in development. A teaser page for the currently named Project GU is now live. The page presents a number of rough sketches. Specifics regarding platform and price have not yet been announced.