Hi
I did some more digging and I found this, its a few weeks old but it keep you reading until hopefully something else offical comes up.
Of course take this as another speculation.
Quote:
Silence doesn't always mean inaction. LucasArts is reportedly working quietly on two big name sequels expected late 2006 or early 2007. No major announcements have been made, but IGN has done some digging and turned up some info.
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IGN has learned that LucasArts recent silence does not mean inactivity. Infact IGN revealed that LucasArts is infact working on a sequel to the surprise hit Mercenaries for Xbox 360 and PS3.
Also quietly in development is KOTOR 3, with the team at Obsedian still behind the game early news is that players can expect better interaction between NPCs and the main character, also IGN said to expect the fighting system to be completely real time. What is not known at the time is which platform KOTOR 3 will land on, one can hope that Obsedian would make the next gen jump.
We'll bring you more information on Mercenaries 2 and KOTOR 3 as it becomes available.
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linkie:
http://www.xboxcircle.com/portal/content/view/953/1/