It's safe to say it's going to be an RPG, but what type we don't know. Hopefully it's too soon for them to be making another great and well thought out MMO so it's going to be a normal RPG game. Sometime ago they stated that there isn't going to be a KoTOR 3 because the great and mighty The old Republic is KoTOR 3-12. But because EA likes money they might be making KoTOR 3 anyway or a type of KoTOR game. If it doesn't take place after the 2nd game I'm thinking it takes place during the Exar Kun era because that mentioned a couple of times in the games or it takes place during The Golden Age of the Sith or the Great Hyperspace War era.
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Gimme a true KOTOR sequel. I want one with the modern graphics and the old Bioware writing quality and the gameplays.