There is a Bioshock sequel ( or perhaps prequel) in the works. That is reasonably well know I thought. And in case you're still skeptical, check out the 2K Marin job listing page.
So I'm guessing the video is legit, but who knows.
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If memory serves, didn't Take 2 just announce that so their share price would increase when EA were trying to buy them? Not to say that it's not underway already but I certainly don't remember hearing anything else about this since about March. Also, I think they said at the time that a different dev team were working on the sequel although in this day and age with everyone buying engines in that doesn't mean much except for the scripting.
There's nowhere I can't reach.