I have just read the following:
Im really saddened by this news. Dead Space & Dead Space 2 were two of my favourite games of this generation; the first being such a wonderful new IP and the second being one of the best action games Ive ever played (and subsequently replayed). Admittedly I havent even gotten around to playing the third entry in the series mainly due to being discouraged by the demo that didnt particulary impress me (I felt it was devoid of the DS tension & atmosphere - and human enemies? Puh-lease). Still, its on my list to play at some point in the near future.
The thing that really struck me was that EA instructed the developers to move the gameplay in to an even more action-orientated style to appeal to a wider audience like Mass Effect 3 had done. As some of the comments in the article rightly point out, "..by going for Mass appeal (the series) managed to lose most of its appeal.."
UPDATE: Phew. So EA have responded by saying these rumours are false. Guess they still feel a few more $$$ can be squeezed from the IP. Its unlikely, but Im hoping the next installment goes back to its dark, ominous corriders - although saying that I wouldnt be surprised if DS4 was a four player co-op or something of that ilk.