I won't deny when I first heard this rumor I though Kotor 3 like most, but then dismissed it. But then I remembered something. Back when the MMO was first announced didn't BioWare say something about making some game for people who don't like MMO's, for the console???
Maybe this is Kotor 3 or maybe it's just another RPG set in a different time considering how popular the two titles became.
Anyway, just something I remember I wanted to put out there. I'm curious to learn more about this project. Hopefully it won't be too long until we get some sort of clue...