The popular franchise, which began on the PlayStation 2, puts Disney characters and settings in an action-RPG featuring original characters and story from Square-Enix.

Development on Kingdom Hearts III, however, will depend on when Nomura finishes on XIII Versus. Two other KH games are in development, with one set to be released in 2010 in Japan.

The big question is if Kingdom Hearts III or the other two projects will hit the Xbox 360 in or outside of Japan. Final Fantasy XIII is the first of its franchise on a Microsoft console.

The latest game in the series, Kingdom Hearts: Birth by Sleep (PSP), will be released in the US this summer.