Beyond Good & Evil was released in 2003, and it was enough of a hit to spawn a sequel, Beyond Good & Evil 2, which was announced in 2008. Ubisoft hasn't said much about it since, but it did confirm to Polygon that the game is still in development. This was in 2012, mind, so we're a bit behind on that one, but fortunately Ubisoft CEO Yves Guillemot was kind enough to say it again over the weekend at E3.
“It's still on the way. It's something at one point you will see, yes,” Guillemot said during a YouTube Live interview with Geoff Keighley.
“It's difficult to say [if it's being 'actively worked on'],” he continued. "Michel [Ancel, director of the original Beyond Good & Evil and the sequel] is working on it, but he's doing two games at the same time, he's doing Wild at the same time. It's coming along, but he has to spend more time on it so we can see it faster."
Guillemot's apparent uncertainty about what exactly Ancel is getting up to has echoes of past news, too, specifically this one from 2013, when Ancel said Ubisoft might “re-announce” BG&E2 in 2014—if he's able to assemble a team, get his stuff together, and convince his bosses to let him get on with it. As far as I know (and as far as Guillemot seems to know, too) it didn't happen. But hey, at least it's not cancelled.