Naughty Dog IS making Uncharted 3. It's set in the desert, and carries the subtitle 'Drake's Deception'.
Entertainment Weekly reports that the game will be released on PS3 "late next year".
According to Naughty Dog's creative director Ann Hennig, the theme of 'deception' has various connotations. Not only does Drake do some deceiving of his own, but is himself deceived about his identity.
The story focuses on the hero's relationship with his mentor and father figure, Victor "Sully" Sullivan.
Drake searches for a legendary lost city known by various names including "Iram of the Pillars" and the "Atlantis of the Sands".
The journey will ultimately take him to the Arabian Peninsula and the vast wasteland of the Rub' al Khali Desert, also known as the Empty Quarter.
The plot reportedly draws from the early real life escapades of T.E. Lawrence - better known as 'Lawrence of Arabia'. However, rather than his esteemed military life, U3 draws from the Brit's early years as an archaeologist.
The desert setting was reportedly 'inspired' by Naughty Dog's desire to answer a 'challenge' - that of rendering organic elements like water, fire and sand, which are technically difficult to credibly render with animation.
Said Hennig: "When we first came up with the idea of sand, you see everyone's eyes light up here and go, 'Yeah, that's going to be really hard - let's do it!'"
Naughty Dog co-president Evan Wells added: "We're a bunch of nerds. We just look for something that will be a technical, artistic challenge, and allowed us to push into an area of the world and history we've never tapped into before."
There's no confirmed release date yet, but Naughty Dog has confirmed that it will hit shelves around the same time as the first Nathan Drake novel, Uncharted: The Fourth Labyrinth, which hits shelves in the autumn.
EW reports: "Uncharted 3′s release date could be announced in the first trailer for the game, scheduled to air during the Spike Videogame Awards on Dec. 11."