Far Cry 2 isn't even out yet, but a third installment of the franchise is already said to be in early development. Speaking at the Leipzig Games Convention, Ubisoft's Patrick Redding confirmed that the game is in the "preliminary stages" and briefly discussed a possible setting for Far Cry 3.
Apparently, the team fell in love with Africa and wishes to further explore it in the new title. Redding explained that while the Far Cry 2 engine is flexible enough to handle other environments, sticking with the African setting in further games is likely to "save time." It's way too early to speculate but hopefully that saved time will allow them to work on the narrative and new gameplay elements.
In the meantime, however, fans of the series already have a game to look forward to, as Far Cry 2 is expected to debut sometime this fall on the PC, Xbox 360, and PlayStation 3.