Director of the series Kotaro Uchikoshi has recently discussed on Twitter the reasons for why Zero Escape 3 is having significant problems in regards to development. Basically, it comes down to how the Japanese sales are pretty bad and, despite its better sales in the west, the managers don't seem to be greenlighting the project. Transcript from NeoGAF user Nibel:

First, I appreciate from the bottom of my heart to the users who played 999 or VLR. Thank you very much! I have received the messages of encouragement or cheer from many users so far. I am really glad and happy. I offer my deepest thanks!

Well... I guess you have been curious about ZE3.

In conclusion, unfortunately, I have to say that it is difficult to realize it "at this stage" yet, although we have done all we can. If possible, I'd not like to inform you of the news like this. But I decided to reveal it honestly. A lot of budget is needed to make ZE series. We have to persuade the managers in order to obtain it. The managers know that ZE series is especially valued by many users outside Japan. Some of them think that they want to make a sequel just as we wish. But, "in Japan", 999 and VLR are in the red. They are not selling more than people think.

I'm so sad, but all the companies exist for profit-making purposes. If the profits can't be expected, naturally, the project isn't approved. We were not able to present a convincing reasonable basis to the managers. Of course, I can declare with confidence, "The next title will certainly get into the black!" However, it's not considered that the word have credibility. It does not become the cause of green light.

I am very sorry to all the users who are expecting ZE3. I feel ashamed of my own inadequacies. BUT! please remember. I wrote "at this stage". If the situation changes, ZE3 might be capable of being realized! I still haven't given up. For example, if the title which I make next bring about a good result, the wind might shift to another direction. Or, if someone with executive ability (financer, producer, publisher or millionaire!) propose the investment, everything could go well. If there is an great investor who thinks "Virtue is its own reward", I wish him/her to send me a message. If you know such a wonderful person, please induce him/her to cooperate. By using Facebook, you can send a direct message to me (Although we also examined crowd-funding like Kick Starter, we figured the idea is not quite persuasive enough...) I believe there is still hope. ZE3 will definitely be released somehow, someday! I will continue to seek a way out in cooperation with Allies. So, I would appreciate it if you could wait until then. Thank you!

Seems that the game's not likely to happen anytime soon.

I thought it did better than it did, but I guess I should have known that these games always sell relatively poorly compared to their critical acclaim. They're never given the attention they deserve.

At least there's still Danganronpa...

They should make an anime of it.

PROBLEM SOLVED

I can't see faces therefore I am evil.

Nooooo! Oh, well... At least he gave us an idea on what's happening with the game. I hope he finds an alternative and that game gets made whenever that may be.

I've been interested in checking out the first two; do they stand alone just fine or does the second end on some sort of cliffhanger?

@bane122: First stands alone fine. Second is a sequel that relies on the first for context and ends on a hell of a cliffhanger.

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Yes and no. The game's story is concluded, but they set up the next game in a way THAT I WANT IT NOW!

;_____; But I need ZE3.

I guarantee that a Kickstarter would do just fine.

This is super depressing. I'm gonna have to jump to another timeline where this game is coming out.

@mcfart: @fluxwavez: Hm, that's a bummer. I'll definitely still try out the first but am wary of the second now. I hate cliffhangers that don't get resolved.

The game's story is resolved in a satisfying conclusion. BUT they have stuff set for a different time. That's as far as I can go without massive spoilers.

But really, if you haven't played 999 yet, then you probably never will. The hype train (Patrick liked those games) is completly gone. What are you waiting for, the end of the world?

Anyways it's still a fucking bummer that ZE3 is never gonna come out. Even with the more "lightheartiness" of the second, I guess the Japanese market is too oversaturated with this type of game to give a shit.

@mcfart: Well if that game's story is wrapped up then I can deal with that. If the third is never made I can just ignore the set up for it.

As for why I haven't played it yet, I hadn't heard about these games until Patrick started them. Not to mention I was DS-less for three years. I don't need hype to want to play a game. I go back and play older stuff all the time. Shit, I played through Simon's Quest while watching the super Bowl a couple of weeks ago.

Man, that's a reaaaaal bummer. I loved those games.

I wouldn't be surprised if ZE3 would do well on Kickstarter, though, it seems to have a pretty big cult-following. I'd definitely help funding it if given the chance.

Ehhh, I doubt it. Most of Kickstarter's successes are small games like FTL that are mostly low-budget graphics with good gameplay. Full voice acting costs A LOT of money, not to mention the type of game we're talking aboot here.

They'd ask for more then you expect as well. If Kickstarter could easily fund this niche game, then a publisher would have already went to them.

Fall 2013 has come and gone without an English release on iOS. It's too bad, I love the Zero Escape series. The bar they set with VLR was too high, I can't imagine those higher profile voice-actors were cheap. Most of those characters don't really need to return, but it's still hard for a series to go backwards in production value and if it didn't sell well, I can totally understand how financing would be an issue. ...though, maybe it was unwise to leave a game on a cliffhanger without a multi-game contract in the first place.

Well, I figure most people would be okay with leaving out 3D assets (it seems that the bulk of fans prefered the sprites of 999 anyway) and voicework. You bring up the type of game, but I don't think (note: I don't know much about game development) that a visual novel would be very expensive to make, compared to other genres. But, as you say, if needed budget was not that big, it would probably have been funded already.

@toowalrus: VO is one of the cheapest parts of making a game as a whole, though I suppose the lack of any particularly extensive graphical needs might make it a significant portion of the budget. Also apart from K the voice acting is nothing special, you could just get a bunch of fans to do it for free and they'd do fine.

Oh well, I'll just go and replay some of the Infinity series games instead.

@fredchuckdave: I think you are underselling voice work. We don't need bad voice acting for such a voice heavy game. I would not mind the production values move a little closer to 999 personally.

Yeah, VLR had a number of well known professional voice actors. A fan dub would in no way be equivalent. (Anyone who thinks a fan dub would trump Liam O'Brien's voice is a crazy person.) I'd much much rather have no voice acting than resort to a fan dub.

@zeik: Lezard's good in other stuff; not really in VLR. Also 999 did not have voice acting.

Dio was one of my favorite characters in large part due to Liam O'Brien. I wouldn't call it his best role, but I still think he played the role well.

And I don't recall ever saying 999 did have voice acting. I was saying I'd rather see a sequel with no voice acting, like 999, over a fan dub.

@zeik: You clearly said 999 had voice acting, just not in this timeline.

Yeah, but that was the timeline where everyone died from the killer bee swarm.

Time to:

I just ordered 999, bit late to the party. Hope things work out for them.

Ah Man! i hope things change these games are great.

If you weren't aware, there is a fan campaign going on to bring attention to ZE 3 and make realizing it possible.

It's a facebook campaign, called Operation Bluebird, and of course being what it is, it probably won't accomplish much, but everything's worth a shot for a sequel to this in my opinion. So check it out if you want: https://www.facebook.com/operationbluebirdze3