We can reveal today that the sequel to the acclaimed PC and Xbox action RPG Star Wars: Knights of the Old Republic, is well underway and should be hitting the Xbox in late 2004 to early 2005.

According to our sources, KOTOR 2 will be set many years after the original game, and will feature an entirely new cast of characters, in what insiders are terming “a Final Fantasy inspired attempt to create many different game worlds from a single franchise.”

KOTOR is perhaps the first game since the Rogue Squadron franchise that has received critical acclaim from gamers, whilst avoiding being labelled as a cash-in title borne of what is without question the most milked franchise in gaming history.

Interestingly, it would seem that the game will not be developed by BioWare as was assumed, with the coding work shifting to Obsidian, a company affiliated closely with BioWare.

Expect more on KOTOR 2 in the coming weeks.