If this is true, then I :love: you even more Rockstar! Having enjoyed every bit of Bully on the PS2, I couldn't believe they didn't pull off a sequel. So here's some inside scoop on it:
Source: Rockstar’s Dan Houser Teases Bully Sequel
Lots of people loved Jimmy Hopkins, the squinty-eyed protagonist of Rockstar's Bully. The academic open-world title didn't set the kinds of records that a Grand Theft Auto game does but it's remained a favorite in the hearts of many gamers. In an interview with Gamasutra's Chris Morris, Rockstar co-founder Dan Houser teases that a Bully follow-up is one the things that the developer's juggling in its schedule:
Also, contrary to a lot of people, we like to take a little bit of time at the end of a game before starting a sequel, so we can wait for the excitement or disappointment and everything else of the experience to shake down and really see what we should do in the next game. So we knew that we didn't want to start doing the Bully sequel instantly at that second with those guys  even though it is a property that, like Max, we adore and might come back to in the future. There was just no impetus to do that then. So we said, "You can do Max, and then we will see what we can do with Bully." So it was really waiting for the slot to open up and the group to open up to at least start work on it.
Source: Rockstar’s Dan Houser Teases Bully Sequel