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Just Cause 3 in development - report

Sources claim it'll be out next year.

Work on a third installment in Avalanche Studios' Just Cause series is underway, with the finished game due out some time next year, so says Xbox World magazine sources.

As reported by CVG, a note in the UK publication's news section reads: "Our spies say devs Avalanche are hard at work as we speak, and that it's set for release next year."

Publisher Sega has so far declined to comment but, if true, a sequel wouldn't come as much of a surprise.

Earlier this year, series creator Christofer Sundberg told Eurogamer that the developer was working on two "huge" titles for release in 2013.

"I can't see that Avalanche wouldn't want to continue on the Just Cause series," added senior producer Andreas Thorsén said. "We love that franchise."

The last entry in the open world action series arrived on PC, PlayStation 3 and Xbox 360 in 2010, winning an 8/10 from Eurogamer. Check out our Just Cause 2 review for details.

Since then the Swedish developer has released excellent downloadable twin stick shooter Renegade Ops and opened a New York office to work on an unannounced next-gen project.