Gears of War will continue, but according to a rumour in the latest issue of OXM it might not be how you expected.
"Gears of War will live on, of course, but in what form?" the mag's holiday 2011 issue says, adding "a prequel trilogy developed by Epic-owned People Can Fly (Bulletstorm) as a likely scenario".
Epic is currently working on Gears of War 3 DLC, which includes RAAM's Shadow, which takes place before the events of Gears of War and lets players take control of General RAAM, the Locus leader.
Gears of War 3 released in September this year and was very well received by critics, earning a 9/10 in our Gears of War 3 review.
A prequel certainly seems possible, especially given that Epic is going that direction with Gears of War 3 DLC. People Can Fly handling development duties also wouldn't be a bad move. The studio has an excellent history, previously creating the excellent Bulletstorm and handling the PC version of the original Gears of War - which included exclusive bonus content.