Source: http://www.allgamesbeta.info/2010/06/square-enix-announces-dungeon-siege-3.html

Square Enix announced today that it is partnering with Obsidian Entertainment on Dungeon Siege 3. With input from the original developer, Gas Powered Games, Obsidian Entertainment will develop the next incarnation of the Dungeon Siege franchise with Square Enix as the game's publisher. Coming for the first time to high-def home video game consoles, Dungeon Siege 3 will be available for PlayStation 3 computer entertainment system, the Xbox 360 video game and entertainment system from Microsoft and Windows PC.

Dungeon Siege 3 is representative of Square Enix's ongoing strategic partnerships with Western game developers and its commitment to increasing its presence in the North American market. The game will bring together the beloved aspects of the Dungeon Siege franchise with Obsidian Entertainment's expertise, to create an evolved action-RPG experience. In addition to its arrival on high-def consoles for the first time, the game will also feature an all-new co-op multiplayer mode.

Originally created by Chris Taylor and his critically-acclaimed studio Gas Powered Games, Taylor will serve as an advisor during the development of the game. Dungeon Siege 3 will seamlessly blend intuitive action gameplay and a robust RPG system in an immersive world where every decision the player makes will result in consequences.

On his involvement, Taylor comments, "It's a great pleasure to collaborate with Obsidian. They are a very talented developer who really knows what it takes to build a deep and engaging RPG experience, and I can't think of a better group to continue the Dungeon Siege series."

"It's a distinct privilege and thrill to become a part of the Dungeon Siege legacy," said Feargus Urquhart, CEO and Co-Founder of Obsidian Entertainment, Inc. "This partnership with Square Enix is a milestone for both Obsidian and the franchise, and the two companies' strengths for compelling characters and storytelling will shine throughout Dungeon Siege 3."

"With their proven track record of developing some of the most exciting and engaging games in recent memory, we are honored to be working with such a talented developer as Obsidian Entertainment," said John Yamamoto, president and chief executive officer of Square Enix, Inc. "Square Enix is committed to expanding our portfolio of games across a wide variety of genres and we are confident we will deliver the ultimate Dungeon Siege experience that fans are looking for."

Torn asunder, the delicate balance of power between the kingdom of Ehb's powerful factions has fallen apart. As one of the few remaining members of the disgraced protectors of the land, the 10th Legion, it is up to you to rebuild the once great Legion and stop Ehb from falling into darkness. Joined by a group of unique companions, you will travel through the striking land of Ehb defeating all manner of villains and beasts through a combination of heroic abilities, screen shaking magic and pure cunning.

Dungeon Siege 3 seamlessly blends intuitive action gameplay, a robust RPG system featuring a large selection of abilities, an extensive multiplayer component and the depth of story Square Enix and Obsidian Entertainment are known for creating.

• For the first time, play Dungeon Siege on high-def consoles.
• Players will be able to adventure by themselves or with friends in co-op multiplayer.
• Uncover a deep story that only Square Enix and Obsidian Entertainment can deliver.
• Pick from unique and highly customizable character classes with a wide range of abilities to choose from.
• Recruit companions with unique personalities, abilities and views on the world around them.
• Players will have weighty decisions to make that will impact their alliances, enemies and the culmination of the story.

This has some very interesting potential synergies going for it.  I enjoyed all three DS titles to date, and there is a definite lack of proper action RPGs on consoles.  So far there is only Sacred 2, Too Human and Borderlands this gen, which is a shame because I think aRPGs actually work better on consoles than PC.

Interesting, quite liked the previous games, but I'm still WAY more hyped about Diablo III.

I never liked the pop-in and transparent graphics in Dungeon Siege. Plus it was very narrow and linear, almost claustrophobic. I mean even more than Titan Quest.

Titan Quest was better. But Dungoen sige still had a certain atmosphere which was nice. It will be kinda fun to see them make a third one.

I agree Titan Quest was definitely much better - in fact I think TQ expansion is better than Diablo II.  However, DS I and II were still great games, II more so than I.

I loved the original Dungeon Siege on the PC. 

Square Obsidian Gas Power Games (input) should be an EPIC PC experience.

While I am glad these games are coming to the consoles, I sure hope they make the game FOR the PC.  I loved ME1/2 and DAO on the PC, but they just did not have that I am a PC game feeling. 

I liked Dungeon siege 1, Loved the demo. Didn't really like 2. Obsidian have talent but all their games are always rushed or in the case of Alpha protocol had a troubled development. I don't know what I feel about this game kinda feels like they are cloning Dragon Age: O/Fable, like they tried to copy Diablo in Dungeon siege 2 which kinda ruined the unique feel of the original. But who knows maybe this will be really good.

Square-Enix and OBSIDIAN collaborating.....this is so weird

Hah, who isn't?

SE may be beneficial to this game. I'd love to see what comes of this...

I hope it's not Project X :/