The team lead, lead designers, and producers of D1, D2, and D2 LOD formed a new company like two years ago when they left Blizzard North.
" As the dust settles after the closure of Blizzard North, a new company has been formed by three members of the team who worked on Diablo, Diablo II and D2 LoD. The company, going by the name of Hyboreal Games, has been founded by senior game designer Eric Sexton (Diablo & Diablo II), Michio Okamura (Diablo & Diablo II), and Steven Woo (Diablo II & LoD). Their first game is already in development and it's a futuristic action RPG called Starfall. According to their website more members of the Ex-Blizzard North team are due to join Hyboreal in the near future so watch this space.
Sharp-eyed reader judata53 spotted this wee tidbit at the end of Michio Okamura's bio "Michio was the creative lead for Blizzard North on a yet unannounced sequel before his departure." Another tiny scrap of info to savour. "
I just checked about two minutes ago and the site is down, odd. Thought, there has been some speculation that under Okamura's profile he is working on a "unnanounced sequel" to "unnanonced project". Who knows. Maybe I was wrong, maybe they are working on D3. But for now, their site is down, which sucks.
http://www.castawayentertainment.com/about.html
^ Also check out this website, could be another good RPG like D2, not too sure what the whole deal is with these former Bliz North employees.