Slitherine Games Acquired Battlefront today....

Maybe they'll port it to Unity. That would be a start...
It has been publicly stated that CM 3 will be using Unity for its graphic engine. Not only that but the dev team has expanded. Charles is still there to do the simulation work.

Seems very positive new so far.
 
Does anyone have any idea where CM3 is in development? Has it even started?
Yes, those that do are expressly forbidden from saying anything. We can only repeat what has been publicly released.

In answer to your "has it started" that I think we can say yes to that.

The answer to your "where in development" question: that has not been officially announced.

Here are a few links where Steve actually mentions something about CM3:

I have heard Steve in the past say that he doesn't like to reveal too much too early because it causes people to speculate and build up an idea in their heads that is way out of scope of what they are actually delivering. So, he prefers to only reveal specifics once there is a solid idea of what the features will be so he can set expectations correctly. He often doesn't even say something is in the works until very late in the game (e.g. Fortress Italy).
 
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