One of Microsoft’s creepiest action-adventure properties may get a new lease in life if this rumor holds water, as Alan Wake 2 is reportedly in development by Remedy Entertainment and Epic Games — bringing back hopes of a sequel to the 2010 game originally released for the Xbox 360 and subsequently getting a PC release in 2012.

According to Game Mess Show’s Jeff Grubb which was also shared by Nibel, Epic Games is going to fund Remedy in producing an Alan Wake sequel. According to Grubb, there was a bidding war between different companies in order to get the rights to the Alan Wake IP, but in the end it was Epic Games that came out on top and are going to work in Remedy to work on their new project — which is Alan Wake 2 according to the video game streamer.

Originally after the release of the first game, Remedy was set to work on Alan Wake 2 and produce a true sequel after releasing DLC for the first game. Unfortunately Microsoft opted to focus on something else and the result was the new game Quantum Break.

Remedy also released the game Control — which they stated was part of the Remedy connected universe along with Alan Wake. That was touched upon with the Control AWE DLC we reported on a while back.