Eurogamer.de's dropped a nice exclusive this morning, carrying a quote from Chris Taylor in which he both confirms Dungeon Siege 3 and says the game will be based on a single character instead of a party.
"There will be some things that are very much like the original Dungeon Siege [games] but only some things will be simplified," Taylor told the site. "I am done with multi-character parties. I really think that its all going to be about a single hero. Its just too much to manage. I want a single hero to get all the focus."
The move is likely to be in line with the development of upcoming Gas Powered Games spin-off Space Siege, which centres on a single character instead of a group.
More through the link. Assuming you can read German, obviously. There are no details in there about date, etc.