The Sims 3

The Sims 3 is a confirmed next-generation simulation game. This was confirmed on November 2, 2006, by EA chief financial officer Warren Jenson.

"Yes, there's a Sims 3 in development and it's likely to be a fiscal '09 title". ~ Warren Jenson on The Sims 3

The Sims 3 (working title) was announced in November of 2006 and will be released in the end of 2008 in the USA and in 2009 in other regions.

It is Speculated of the game being in a city, but it is unknown if the game will turn out that way. It should also be noted that the term 'city' is a vague one, which could infer anything from a contiguous, real-time neighbourhood that can act as a city to decide things, to an actual urban area reminiscent of The Sims Urbz.

In July 2007 AI researcher Richard Evans , who is part of the TS3 team, gave a talk at the annual AIIDE (Artificial Intelligence and Interactive Digital Entertainment) conference in California, notes from which can be read here.

During a fansite preview for The Sims 2: Free Time, it was shown that many EA games would be added to the sims world. Around that same time, a video was released onto YouTube showing a sim in The Sims 2 playing what is presumed to be (possibly a beta version) The Sims 3. In that, it shows something towards a continuous, panning neighborhood, diagonal placings for objects, better lighting systems, and the ability to change shoes in the CAS. The preview only lasts about one minute, and has poor resolution, but it has made many people suspicious as to whether Maxis/EA will announce The Sims 3 with the release of the (most likely last) expansion pack (i.e. Free Time).

According to the games for windows magazine "The biggest change to The Sims 3 is that it takes place in a wide-open, constantly changing neighborhood -- a much bigger sandbox" this probably means the game will have an Open World (Like Grand Theft Auto, Bully, Need For Speed Carbon and Burnout Paradise)

The game was partially developed by Criterion Software.

According to the official website, as of 15th, March 2008, there will be more news regarding the title released on March 19th, 2008.