From Wikipedia:
Star Wars: Battlefront III is the fourth installment in the Star Wars: Battlefront series (third excluding Star Wars Battlefront: Renegade Squadron). It was originally speculated that Free Radical Design would be developing the game, after announcing that they were working on a "Secret LucasArts Project" on August 23, 2006. However on December 18th, 2008, Free Radical Design announced that their company had gone into administration, and that the project had been handed down to Rebellion Developments, the developers behind Star Wars Battlefront: Renegade Squadron. On June 7th, 2008, an alleged ex-LucasArts employee came forward to Kotaku and unofficially announced several games in developement, including Star Wars: Battlefront III.
On October 2, 2008, the OFLC listed Star Wars: Battlefront 3 for the Nintendo DS with a PG rating, filed by Activision Blizzard. On December 28, 2008, renders of Star Wars characters surfaced from a laid off employee of Free Radical, bearing the Star Wars Battlefront III watermark. These can be viewed here. On January 15, 2009 footage of Battlefront III was leaked. As well as the updated graphics, there seem to have been some welcomed changes from the first two installments of the series, most notably the ability to fly from ground to space and board orbiting space craft with no loading screens. Unfortunately, the following day some more information was leaked regarding the titles departure from Free Radical and with it the loss of the "complete freedom" that the video showed. Some information also came to light regarding a possible story line which involved a "Dark Obi-Wan Kenobi". It is unknown if this storyline or the "complete freedom" style of play will continue with the title to its new developer, or even if the title is still in production. Recent rumors have surfaced that suggest that Pandemic Studios has picked up on the game because their website lists an untitled project named "Project X".However, with Free Radical now under new ownership under Crytek details on who is currently developing the game are still unclear. Lucasarts has made no official announcement regarding this title as of yet.