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1C: Ino-Co is working on the sequel to Fantasy Wars called Elven Legacy. This game is scheduled for a 2008 release.
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Man, I'm still waiting to pick Fantasy Wars up when I get the money after Xmas and already there's an announcement for a sequel! 1C is officially my favorite company right now. I was so excited to see a company start producing tier 1 turn-based games again and they just keep piling it on. I'm pumped!