The question of Kratos being dead or alive can only be answered by the studio who left his fate hanging by the end of God of War 3, but what we can tell you is that the next iteration of the God of war franchise is underway and we found a bit of proof that this project does exist and is currently underway.
He has also been working on a concepts for an 'unannounced intellectual property' with Stig Asmussen (Director) and Ken Feldman (Art Director) during the last four months. These are the guys who molded Kratos in the third iteration of the God of War trilogy.
This gives us a good enough indication that the next version of God of War has been under- construction for the last 4 months and involves the same set of top executives who powered the God of War III , unlike the previous ones where both directors(Jaffe and Cory Barlog) left the company to start working on their own set of projects.
The question now lies whether it is in development for the PS3 or Sony's new powerful handheld the PS Vita
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