Yes it’s true Diablo fans, Diablo III is real and from the looks of it should be out by Christmas 2008. Now Blizzard hasn’t committed to an official date since:
It’s too early to estimate Diablo III’s release date. As with all Blizzard Entertainment games, our goal is to create a game that is as fun, balanced, and polished as possible. We intend to take as much time developing Diablo III as is necessary to ensure the game meets our own high expectations and those of our players.
But as you can see from the gameplay trailers, Blizzard has invested large amounts of time into the project and a release is just around the corner.