Well, it's finally been announced. "Xenosaga Episode 3: Sprach Zarathustra " YAAAAAAAAAAYYY!!!! It's going to take place one year after episode 2, will have the same cast, and they say it will have more mech battling. They also say that it's going to be the final installment in the series. YAAAAAAY...um..BOOOOOO! I'm not very surprised actully, considering how poorly Episodes 1 and 2 sold compared to what the company was expecting. Cutting the series short is better than having them keep going on the original plan and then canceling the series and leaving all the fans hanging. I just hope that they can bring things to a satisfying conclusion in Episode 3. With a story that was originally planned for 6 episodes they will probably have to cram in a lot of stuff. Maybe this one will be 3 discs.
http://www.rpgamer.com/news/Q3-2005/091405a.html
that's where I got the information.