Code named Jefferson and FR6, was mentioned in early 2001 as a new game in the Baldur’s Gate series to be made by Black Isle Studios using a completely new 3D engine. BG3 was originally going to be a departure from the high-powered epic of the Bhaalspawn saga to a low-key, roleplaying plot. With protagonists progressing to around level four at the end of BIS’ typically enormous campaign and a hard cap at level eight, gameplay was refocussed to a flat and wide adventure emphasizing quests over combat.
The game appeared to be canceled in 2003, just before its engine was re-purposed for Black Isle’s ill-fated Van BurenFallout 3 project. The Black Hound is currently under development as a module for Neverwinter Nights 2, being developed by Josh Sawyer, one of the designers of the canceled game.
On 2 December 2008, Atari stated in a press conference that the Baldur’s Gate series (among others) would be revisited after 2009.