There are recurring rumors about the development of 'Bully 2'whose announcement and release have been anticipated several times now. However, according to recent reports, the game will probably not be released in the foreseeable future.
According to anonymous sources, an initial script was written in 2008 as a direct sequel by Rockstar Chief Dan House and other creatives, which included some scenes with Jimmy in the lead role. The setting was apparently his stepfather's villa, though a final location couldn't be decided upon. The college was also reportedly considered as a possible location.
Between 2010 and 2013, a first playable prototype was reportedly developed at Rockstar New England, running on Rockstar's RAGE Engine. Ultimately, however, development was abandoned. "fizzled out" And the team turned to other projects. Whether development was ever resumed is completely unclear, though not unlikely, especially considering all the rumors of the last few months.
The source in question claims at that time only: "It existed, it was playable, it was just a shame that it never got off the ground."
As mentioned, it's not entirely unlikely that Rockstar has revived the project after such a long time. However, there's been no official confirmation of this yet.