Kingdom Hearts 3 in Development Along Side KH2.5

[Andromeda]

While Nomura has admitted that it is still along ways off until we see the release of Kingdom Hearts 3, due to his engagements with other Final Fantasy projects. He also was able to confirmed in an interview with Famitsu that Kingdom Hearts 3 is currently being developed and not on hold. The Osaka team will working on the game while also completing Kingdom Hearts 2.5 HD. He talked more about the combat for the game, saying that it was an evolved form from KH3D for the 3DS and that the keyblades will be able to transform into more than just guns.

Source: Kingdom Hearts III And KH 2.5 HD Remix Are Being Developed Simultaneously - Siliconera