Halfbrick Studios is working on a sequel to Fruit Ninja at its new government-supported studio in Sydney, Australia. In mid-October it was revealed that the Brisbane-based company was opening up a second studio in Sydney; a new piece in the Illawarra Mercury tosses up some more details.

According to New South Wales Deputy Premier Andrew Stoner, the studio is the result of a new $3 million "Interactive Media Fund," but there is no clear indication regarding how much of that fund went to Halfbrick.

"The new Sydney team will develop the next evolution of the Fruit Ninja games franchise. The new game will involve players launching a series of fruit to knock ninjas off their towers in a 3D world, with each fruit having special powers," Stoner said. The game is expected in 2012, with an initial launch on iOS.

Stoner explained the $3 million fund is designed to support local developers over the next two years. Given the current state of the Australian development scene for big publishers, it may be time to get a bigger fund for the local indies.