Baldur's Gate 3 is currently in development by an unknown studio, if a tweet by inXile Entertainment founder Brian Fargo is to be believed. Fargo, who was previously an executive at Baldur's Gate publisher Interplay, tweeted yesterday that he knows who working on the sequel to the acclaimed RPG series.
I happen to know who is working on BG3— Brian Fargo (@BrianFargo) October 4, 2018
Fargo's tweet follows a series of rumors heavily suggesting that work on Baldur's Gate 3 is in progress. At least one unsubstantiated rumor points to Larian, who have lately garnered praise for their work on the Divinity: Original Sin games. However, Larian has denied the rumors according to Wccftech.
Baldur's Gate, which will be celebrating its 20th annniversary in December, remains an extremely popular derivation of Advanced Dungeons & Dragons. It's considered to be one of the single best examples of the isometric RPG sub-genre, subsequently paving the way for some of the best RPGs ever made. BioWare notably got its start working on Baldur's Gate.
Baldur's Gate 3 was originally under-development at Black Isle Studios, with Josh Sawyer serving as its designer. Titled "The Black Hound," it was eventually canceled. Sawyer has said that it represented some of his favorite work ever.
Both Baldur's Gate and its sequel have since received enhanced editions for PC and mobile courtesy of Beamdog. In 2016, Beamdog released Siege of Dragonspear, which was the first new content in the series to be released in more than a decade.
It's been something of a renaissance for isometric RPGs of late. Apart from Divinity: Original Sin, Obsidian has found solid success with Pillars of Eternity. In such an environment, it's not surprising at all to hear that someone is keen to revive the Baldur's Gate brand.
Assuming Baldur's Gate 3 is real, and it sounds like it is, it will have some massive shoes to fill. Best of luck to whichever studio has managed to pick it up.