IMPROVEMENT
Well comparing to the last one this is a huge improvement. Better animations, better scenery, better voice acting....but it's not a 10...or 9....
There were some issues with this...mainly logical issues and story issues and continuity issues. I really don't want to get into the logica issues cuz it seems that games like these don't have a whole lot of logic with their items. This was better than most I've seen or played but still some strange things made. The story.... while still ambiguous about the monsters, suffers with the confusion that is Mag. I can go along with the fact about the monsters being mysterious...and the magic man cell didn't really tell anything except that he some how has a connection with them. I could say he summoned them but that wouldn't be consistent with the first one...where everyone knew about them save your guy. Now Mag....WHAT THE HELL IS SHE DOING THERE?! Is she a doctor? cuz this didn't really show to be a mental institution even though there's a crazy in the same cells as the not so crazy. Who the hell is the guy she loves, there's not explaining except for a picture with man of my life and stuff.
The story really just got more confusing with extra things thrown in with not as much info. If you're going to make a third one, focus on explanations and story. The animation is not perfect but it's acceptable now so I don't think you should worry about that. This one was more of something to do when I'm bored thing mainly because of the story.
Over all I'd give this a 5/10, for the improvement.