I'd be a bit surprised if the series didn't continue. Other 1C published games are getting sequels done (Fantasy Wars -> Elven Legacy, Theater of War 2, Men of War is the third "of War" game), and I'm not sure their sales would be much higher than King's Bounty.
King's Bounty, while I'm not sure how much it sold, it does seem to be quite popular with a ton of forum posts compared to other 1C titles, and it doesn't appear to be a game that needs a really high budget to create.
They seem to have a bit of an established community here to sell to, and King's Bounty did well review wise, and they didn't particularly have much of a marketing campaign so their next King's Bounty title will probably get a bit more coverage and more widespread word-of-mouth than this one did.
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