Bohemia Interactive announced yesterday that they are developing Arma 3. 

"We're happy to bring the next generation of the Real Virtuality engine to life." says Marek Spanel, Bohemia Interactive CEO.  "The increased potential of the engine should allow Arma 3 to become our best-looking, most detailed and innovative military simulation game to date."

Bohemia Interactive will have private presentations of Arma 3 at this year's E3.