Announced in February 2000, and cancelled shortly after in March 2000, Dungeon Keeper 3 would have had the player or "Dungeon Keeper" attempt to lay siege to the surface world of the heroes. A trailer for the game was included with Dungeon Keeper 2 that tells players "The time has cometh, a world of heroes awaits, a new beginning unfolds" while showing series mascot Horny rising to the surface.
Reason for Cancellation
The official statement by Bullfrog given at the time of cancellation was "A third episode of the Dungeon Keeper saga was underway, but opportunities to develop new intellectual properties on new platforms such as PlayStation 2 have meant that DK3 has been put on hold. There are currently no plans for another Dungeon Keeper game, however it remains an important franchise and there may be opportunities for us to pursue that direction in the future."