Well, of course this is happening. With Insidious succeeding in its dark mission of making close to a hundred million dollars on a scant $1.5M budget, we're getting a sequel. Director James Wan and writer Leigh Whannell are already in talks to return, and Paranormal Activity's Steven Schneider and Oren Peli will once again executive produce. But, tragically, one key figure is almost certainly not returning to the world of insidiousness: that jerk with the red face. Continue on if you don't mind finding out/being reminded why that is.
As you may recall, as the last film left off, the possessed child had been saved and demon guy had been vanquished back to The Further, the dark land where Darth Mauls/Miami Heat fans/excited Burning Man attendees apparently live. Unfortunately, as star Patrick Wilson departed The Further, he brought with him the spirit of some terrible old lady, and now his Ken doll body is but a puppet of her malevolent, elderly will. Ut ohhhhh.
It thus far remains unclear if a sequel will pick up there, likely forcing producers to pay P-Dubs slightly more than last time, or if they'll just start from scratch with a new, cheaper single-family household unit with a different-colored demon or something. Production is scheduled for later this year for a 2013 release.