Square Enix have today announced Dungeon Siege 3, the third game in the action-RPG series, this time curiously being developed by Obsidian Entertainment - whose previous works include Neverwinter Nights 2, Knights of the Old Republic 2 and more recently Alpha Protocol the the upcoming Fallout: New Vegas.

According to the press release, original series created Gas Powered Games' Chris Taylor will be assuming some manner of advisory role over the development of the new game.

The announcement confirms that the singleplayer campaign will include control over a party of characters with very customisable classes and that it will also feature cooperative multiplayer.

Further particulars and the first screenshots can be found over at our new Dungeon Siege 3 game page.