Tetsuya Nomura, Game Director/Designer for Square Enix is easily one of the busiest people in the industry. With his current involvement on projects such as Final Fantasy Type 0, Final Fantasy XIII-2 and Final Fantasy Versus XIII one can’t imagine he has much room to breathe. Even with such a workload, he hasn’t forgotten a title that fans have clamored for since he first mentioned it: Kingdom Hearts III. In an upcoming Famitsu, he breaks a long silence on the subject.
Nomura-san said that future games KHIII games will no longer feature Xehanort. Although this is quite a change to the status quo, the series doesn’t end with the third installment. Sora will remain as the main character, and there is already an outline for where the series will go from that point. For those wanting even more details on what the future might be, Nomura-san suggested they look in the most unlikely of places—the 3DS. Kingdom Hearts 3DS will apparently tease some elements for KHIII, although Nomura-san was not specific about what it was.
Although not specifically mentioning any titles in particular, Nomura-san did let slip that they are looking into HD technology tests for past titles.
No release timeframe mentioned, but details of this nature are excellent as they confirm it is still very much in development.