According to the French Official Nintendo Magazine, Ubisoft already has plans for Red Steel 3. The game will supposedly make use of the Wii Vitality Sensor, the newest Nintendo peripheral. Unfortunately, that was the only detail shared in the magazine.
I do have a few doubts about the validity of this news, however. Red Steel 2 was literally just released and there have been talks of bringing the franchise to the PS3/360. I’d love for this information to be true, but until Ubisoft makes some sort of announcement (or confirms that this is fake), keep your fingers crossed.