If Bandai wants to carry on with the Code Geass franchise, they will have to incorporate Lelouch in a pretty big way, because that’s where the money is – especially with the Lelouch-loving Japanese audiences, which are more important because the anime industry’s marketing opportunities are bigger in Japan than in the West. If they decide to continue the anime, it will have to turn out Lelouch is alive. If they decide to go with an alternate universe approach, Lelouch will also have to be alive. And since Bandai will inevitably want to continue Code Geass (they have already indicated it themselves) we will be seeing him in some form or another in the future.
Compare with Char Aznable from Mobile Suit Gundam: they could drop Amuro “White Devil” Ray for the second series because, well, he was a whinny brat and not well liked. But they had to put Char “Red Comet” Aznable in every series up until his death in Char’s Counter-Attack (and then “bring him back” as a clone later) because his character is what sold the merchandise. In the same way, Lelouch moves product; none of the other characters, and especially not Suzaku, can take his place in that capacity.
Compare also with Mobile Suit Gundam Seed Destiny: originally Kira/Jesus/Zeus Yamato and most his pals were slated for much reduced roles, but audiences responded very unfavorably because they missed the old cast, so they tossed out the old scenarios and improvised their way through the series – which is why Destiny had problems with pacing and characterization, and ultimately did less well financially than Gundam Seed. In the same way, removing or de-emphasizing Lelouch too heavily (such as by having him be dead) would hurt sales too strongly for Bandai to stay with it.
Or put simply:
1. Code Geass is too profitable to discontinue the franchise.
2. Lelouch is what make Code Geass profitable -- his Byronic, Machievellian personality makes him one of the more popular anime characters in decades.
Doesn't take a genuis to know what the future of Lelouch and Code Geass is.
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It was confirmed by the creators or someone of similar position that Lelouch died.
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Even that is amiguous, because the director was actually phrasing it in the form of a question, something like, "Death is the price Lelouch has to pay if he is to create his better world, right?" Writer Okouchi was seeking the agreement of the people he was talking to, although it implies he thinks that they should agree with him. So the "confirmation" of Lelouch's death wasn't a definitive statement, nor is it the consensus of the entire creative team.
But Lelouch probably did die -- the question is if he remained dead. In the Code Geass universe, death is not necessarily the end of life. There are several signs which indicate he may have transcended his death (I'll post them if anyone is interested): Lelouch living is consistent with one of the reoccuring themes of the series -- "living beyond" or "coming back" from death. Several characters go through this experience in the anime, why shouldn't Lelouch, the Code Geass character Bandai stands the most to gain from keeping alive, be one of them?
I'm pretty sure that the creators had no intention of killing off Lelouch forever -- but leaving him in that state at the end of the second season gives them an intrigue angle for the movie, OVA, or third season. They can tantalize the Lelouch-lovers with the possibility of his being alive. I'm pretty sure that is one of the rationales for the end of R2.
Anyway, if they continue the anime from where it left off, they will probably introduce a new (supernatural) enemy and delve more into the supernatural elements of the show. Otherwise: alternate universe.
But there are more plot points left to pursue than most people think: for example, Suzaku's transition into Zero; lacking Lelouch's intelligence, charisma, and coolness (emotionally speaking), it is unlikely Suzaku is anywhere near as effective of a Zero as Lelouch was, which could culminate in the ressurected Lelouch talking his friend into the role or taking it back for himself -- depending on whether it is economical to make Lelouch Zero again.
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Lelouch died that day and LL was born.
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That's possible. Also, the only one who was said to have died was Lelouch vi Britannia -- Lelouch went by the surname 'Lamperouge' for most of the series. So long as he never takes on the persona of Britannian royalty ever again, it is spiritually true that Lelouch vi Britannia is dead, even after Lelouch himself returns to life.
However, I doubt people will call him LL.