Continuity saved game, Dead Island and Dead Island Riptide

I highly doubt it, but it is a possibility.

haven't heard the dev mention about that.

starting the game as a level 40 is incredibly overpowered dont you think?

sounds like it'd be game breaking to do that...

I'm seriously doubting that too. They would have to increase the level cap by a huge amount. It makes more sense just to have characters starting at level 1 again.

According to Joystiq, as of August, yes.

http://www.joystiq.com/2012/08/31/dead-island-riptide-2013/

No, but you can use your saves from The Walking Dead game. It will automatically add DRAMA and SUSPENCE to the game.