Mirror's Edge 2 has undergone quite the torturous development cycle, from being back in February 2011, which was followed by of a revival of the game using the Frostbite 2.0 engine.
Now, Dual Pixels claims that an "inside source" has told them that the next Mirror's Edge game is a "showcase title" for Microsoft's Durango (aka the Xbox 720) and the next generation of Kinect sensor, using the aforementioned Frostbite 2 engine.
If that weren't enough, the next generation Microsoft console will feature a controller that has a detachable analog and 3" touchscreen gamepad (which is reminiscent of the old Dreamcast controller.) Mirror's Edge 2 allegedly would make use of that miniscreen.
Finally, Mirror's Edge 2 will, according to the source, be unveiled at E3 2013, presumably in conjunction with the next Microsoft console unveiling.