According to a report stemming from EGM’s trusty rumor-monger Quartermann, Epic Games is already hard at work on a third installment in the badass, action-filled Gear of War series. Targeted for a late 2010 release, Gears 3 is said to feature five player co-op, among various engine-level tweaks.

Sounds about right to us, seeing as there was a two year lapse between the release of the original Gears and its sequel. Although yet to be officially announced, we also know a new Halo is in development, which means that Microsoft would have two major releases in store for 2009 and 2010.

Gears 3 for Christmas 2010? [CVG]

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