The sequeal to the 1st game, Costume Quest 2 is exactly what its suppose to be. Cute, fun and now a bit more challenging. I played the game twice because I realize there was an achievement to finish through the whole game with one of your party members wearing the candycorn costume, which is a bit more challenging.
The story takes place immediately after the first game (not gonna go any further discussion about the story because I dun want to give spoilers), though I have to say they could have a little bit more depth to the story. The whole game is almost the same to the first one, but with a number of additional gimmicks and changes:
1) All the characters now have the same button prompt unlike the previous game where they all have a variety of it;
2) You can now attack again after a successful attack, and also there are levels of damage depending on your timing;
3) You can now defend and counter;
4) Once you flee, you will teleport auto-matically to a healing-well-thingy, which follow up to my next point...
5) You can now heal and save at a healing-well-drinking-thingy, not a ignorant police phone booth;
6) You will have a lot of cards to use in battle to act as an battle-equalizer, because the fights are a lot harder than the first game
7) You can now move faster in any costume, unlike the first game which is the ability for the robot costume;
8) Costumes and enemies now have effectiveness typing, kinda like rock scissors paper. They are Monster, Magic and Mech types.
Thats all the things I can think of for now.
The game is now more challenging, which is good. The characters are still adorable and lovable, and the attack prompts in battle feels more respondsive. The main menu though, I wish they would just stick to the simple looking menu rather than what it is now, but oh well. Overall not bad for a sequal.