Sonic Team confirms this is the plan
With the upcoming release of the second episode for Sonic 4 to arrive soon, it is only natural to wonder if Sega has anything further planned.
According to producer Takashi Lizuka of the Sonic Team, the company is “not planning” to release any additional episodes for Sonic 4 after episode 2 is released. While the Sonic Team is apparently anxious to hear feedback from episode 2, it looks to be the last episode for Sonic 4, at least.
While Sega is not saying if this is the last of the old school style Sonic, we doubt that it is the end of Sonic as a character. We expect the blue fuzz ball to show up in future titles. It is unknown if the decision to stop with episode 2 was sales related, meaning that the first episode did not generate the kind of sales numbers expected; and while it generated enough for episode 2 to occur, it could be that it is simply not profitable enough to continue. At least these are the whispers we are hearing from one of our sources.