Even though everyone thinks Lightning is dead, she is a playable character in Final Fantasy XIII-2. Attendees didn’t see her on the show floor, but in a behind closed doors meeting Square Enix showed a fight between Lightning and Chaos Bahamut.
Before the battle, Lightning jumped on Odin. The camera panned to city ruins and Chaos Bahamut flew from the sky and into Lightning’s path. The camera continued to move during the battle where Lighting rode Odin while Chaos Bahamut lunged at her.
Lightning saved the world in Final Fantasy XIII, so she is not a level 1 character in Final Fantasy XIII-2. She retains powerful attacks, five selectable commands, and pelted Chaos Bahamut with thousands of points of damage. Compare that to Serah and newcomer Noel who scratch out a couple hundred HP per strike on weak enemies.
The battle galloped on until a cinematic action where Lightning jumped on a falling building and cut into Chaos Bahamut. Like other cinematic actions, players had to trigger quick time events.
Square Enix wouldn’t say anything else about where Lightning is other than promising a reveal at Tokyo Game Show. Final Fantasy XIII-2 is slated for a winter release in North America and Europe. Japan gets the game in December.