Capcom Japan today announced the sequel to Resident Evil : Degeneration, titled "Resident Evil : Damnation" currently scheduled for a 2012 release date in Japan. The movie will be CGI like the last one and also in 3D. Leon S Kennedy returns as the central character and one can imagine this movie will somehow tie into the future entries in the series. Read the official announcement notice at the link below.
Resident Evil : Damnation Announced, thanks to doomed.