So, you're probably asking yourself, "When the heck did Sega announce a new 'Toejam and Earl,' game?" The short answer is...they didn't. Sega doesn't actually hold the IP to "Toejam and Earl." Greg Johnson, one of the designers of the original game, does. While there is a lot that's still up in the air in regard to a new game at the moment, a true sequel to the cultish, but beloved, first game is definitely happening. This message was posted on the official "Toejam and Earl" Facebook page:
"Greetings from Funkotron! We haven't been posting as often lately because we've gotten really busy with the new TJ&E game. We will be making some announcements in a probably 3 or 4 weeks, when we have something we can show, and will be able to share lots of information with you."
Also, Johnson left this comment on a "Toejam and Earl" article at GeekParty: "In any event, I am now setting about making (at long last) a true sequel to game one, as an indie title."
Add up all of this information and the best guess here is that we'll be seeing a Kickstarter or some sort of crowdfunding campaign in the near future. Johnson also posted a few pieces of concept art (below). When the game is officially announced, the developer will be HumaNature Studios (HNS), a new, indie studio being headed up by Johnson himself.