According to GaminSteve's website, an informed source over at Blizzard confirmed him that the company is indeed working on Diablo 3, and has been so for the past four years. Why then has it not been released yet? According to his source, the game just wasn't fun and was being reworked. This apparent failure was what instigated the Blizzard North closure mid 2005, and people were relocated to Blizzard's main office in Irvine so the higher ups could keep a closer eye on the project.