Star Wars: KotOR III Under Development?

The folks at GameDreamz are reporting that a third Knights of the Old Republic title may be under development by Obsidian Entertainment. Since nothing official has been announced, however, it should not be considered fact just yet. Here are the few details they speculate on:
George and crew are most pleased with the initial performance of KOTOR, so pleased in fact that KOTOR 3 is well into development! This time however expect everything to be new and improved! An all new next-gen engine is being prepped as is a modified battle system that will place a heavier emphasis on the lightsaber. There are even whispers that the game may be shown in some form at E3 THIS year, though I'd expect it to be far from completion, perhaps nothing but a video!