The following is from the StarwarsKnights.com
(it's about a month/two old, but still good stuff)
Well, it has been a few weeks since we last heard aout some KotOR 3 rumours, ut today we have something new for you.
Gamedaily has posted a feature called "The Unofficial Five of Next Gen", looking at some sequels we all know will be coming sonner than later. And among such high-profile franchises as Halo, GTA, Final Fantasy and Mario, we find their take on Knights of the Old Republic 3:
"One of the most successful Star Wars games of all time is heading to the next generation courtesy of Obsidian. The third installment of the series will expand on the somewhat lackluster second title and once again be exclusive to Microsoft. We've heard that Bioware has had very little involvement with the third title, but Obsidian has been clearly instructed to take their time and pump out a game that rivals the original in quality.
We don't expect Knights III to make an appearance at E3 2006, but the holiday season should bring around news on the next generation title. Expect it to pick up many years after Knights II with an entirely new cast of characters and even more force powers. Shifting your character between light and dark will also have a much more significant impact on the game."
Let's cross our fingers and hope they are incorect on the "no appereance at E3 2006" part
Concept Screenshot??
http://www.starwarsknights.com/view.php?screen=screenshots/K2_00010.jpg