*sigh* I guess maybe this is worth posting...
Originally Posted by Feargus Urquhart on Obsidian's forums, 2007-APR-04
Finally, I should probably talk about the twin gorillas in the closet. I'm sure there's a correct analogy in there somewhere, but that's what came to mind. Anyway, I'm speaking of the the KotOR3 and Fallout gorillas. Both of those are games that I and everyone else here at Obsidian would love to make. I don't know if we will ever get the chance, but I do continue to talk with LucasArts about what might be going on with KotOR3.
Source: Top Ten @ Obsidian, Featuring Feargus Urquhart
So at least we know that Obsidian's position hasn't changed and they're still interested in making KotOR 3. Not new news but rather a recent reaffirmation of Obsidian's previously expressed position.
***Jeopardy theme continues in its infinite playback loop***