If you remember about seven months ago Free Radical closed their doors, and arround the same time someone leaked gameplay footage of Star Wars Battlefront 3. The awesome footage left most of us felling much remorse for the revered Haze developer. Well, as it stands you may still get a taste of Star Wars Battlefront 3...
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Further, it's possible that, even after all this, we may not end up seeing a next gen version at all. The targets set by Rebellion for the PS3/360 version are allegedly "impossible" to meet. LucasArts may go the way the did with the new Indiana Jones game, and just not produce a high def version.
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The fate of Star Wars Battlefront III remains unknown, because according to Mathew Everett, Community Manager for all games at Pandemic Studios, Battlefront III is not at Pandemic Studios:

"As of right now I can say Battlefront 3 is not currently at Pandemic. While I know the title seems to be up in the air from all the buzz around the web... Lucas Arts will be the only one knowing where the title is at right now."
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The troubled development of Star Wars: Battlefront 3 has taken another interesting twist. After jumping from the sinking ship Free Radical to Rebellion, who are currently hard at work on Aliens vs. Predator 3, it has now been handed back into the hands of the developer of the first two installments – Pandemic.

After the recent leaked footage - which we'd thought to be in-game, but since turned out to be pre-rendered - appeared online in the post-Free Radical fallout, Battlefront 3 looked full of promise, and with Rebellion's experience with the underrated PSP version, the future of the series was looking good. Pandemic, however, are on a bit of a downward ebb in recent times, with Mercenaries 2 being a huge disappointment, and Lord of the Rings: Conquest – billed as essentially "Battlefront in Middle Earth" - being a bit of a turd.

Perhaps getting their hands back on their baby will be enough to inspire them to bring their A-game this time?
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According to UK development sources, Rebellion proposed to LucasArts that its PlayStation 2 version of Star Wars Battlefront III could form the basis for both 360 and PS3 versions of the game.
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Earlier today PSU reported on leaked footage for Battlefront 3, offering readers a glance at what Free Radical had in development before closing it's doors. Further investigation of the footage has revealed what appears to be a surprising plot twist in the game, with Kotaku reporting a Sith, perhaps even a hoodless Palpatine, telling "Kenobi" to "stick to the plan" about four minutes and 55 seconds into the video.

What does it mean? Well, according to leaked concept art that hit our mailboxes this morning, it appears Free Radical had plans for a dark twist on Obiwan Kenobi. An old man, gnarled by the corruption of the dark side, and living in the swamps of Dagobah.
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VG247: A very reliable "insider source" has told videogaming247 that Star Wars Battlefront 3 is heading back to Pandemic's studios in Los Angeles, California.

Pandemic Studios and LucasArts developed the first Battlefront back 2004, with the sequel coming out just a year later.
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Kotaku: Looking through that beautiful footage of Star Wars Battlefront III again and again and again this morning, I couldn't help but notice something:

It sounds like a Sith, perhaps even a hoodless Palpatine, is telling "Kenobi" to "stick to the plan" about four minutes and 55 seconds into the video. The actual quote is "Stick to the plan Kenobi."

What's this now? Could it be that LucasArts has approved another storyline that deals with the internal struggle against the darkside, this time featuring Kenobi? I haven't a clue but it does seem to show that the jedi will make some sort of appearance in the game.
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A VG247 insider source informed us this morning that yesterday's leaked Battlefront 3 footage is indeed real.
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Kotaku: "More leaks springing from the now dead in the water Free Radical, it seems.

We've already caught a glimpse at some pretty impressive TimeSplitter 4 and Star Wars Battlefront 3 art. Now we've got what is supposed to be early footage of Star Wars Battlefront 3.

The footage, we're told, was taken at an internal alpha meeting with Free Radical back in November. It looks pretty amazing and features some pretty detailed cut scenes."
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Richard Smith, a former employee of Free Radical, has posted some of the first renders he modeled for Star Wars Battlefront III which include such characters as Han Solo and Sahra The Bounty Hunter.
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GamesIndustry.biz reports that the highly secretive Star Wars Battlefront 3 has been shipped for continued development into the hands of Rebellion, the developer behind PSP hit Star Wars Battlefront: Renegade Squadron following the closure today of UK based developer Free Radical.
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The third installment in developer Lucasarts' money-raking Star Wars Battlefront series will be exclusive to Xbox 360, claims British mag PSW. Battlefront 3 is currently being developed by TimeSplitters studio Free Radical. Speaking last year, director at developer Free Radical Steve Ellis said of the game: "This is a project we are very excited to have been given the opportunity to work on. It will be ... » Read More

The March issue of UK magazine PlayStation World dropped quite a bomb in its pages this week, in the middle of a Star Wars retrospective feature. On page 65, PSW states that Free Radical - the team behind GoldenEye and TimeSplitters - is masterminding the next iteration of the Star Wars Battlefront franchise. Check out what they had to say: "Star Wars Battlefront III is also currently in development, with LucasArts having switched coders from Pandemic Studios - who made Battlefront I and ... » Read More