Deathspank - Sequel Confirmed

The rumoured Deathspank: Thongs of Virtue has been confirmed by Kotaku and will be released next month.  Strangely, Hothead apparently developed the two titled simultaneously:

The two DeathSpanks were made in parallel at Hothead, with the added time for the second ensuring that the new game could be bigger. That creation schedule does't mean that the new game could incorporate much of the fan feedback toward the first one, though. Thongs of Virtue won't reflect any major changes demanded by the DeathSpank public. Online multiplayer, for example, still won't be in the game, though the off-line two-player co-op will now allow the second player to alternate between two characters, conrollingthe returning Sparkles the Wizard or using — quoting the press release again — "the ninjatastic Kung Fu moves of DeathSpank's new partner in crime, Steve."