They could also go with an all-new protagonist - they haven’t decided. In any event the world is tearing itself apart as Templars and Mages fight for control.
Creative Director Mike Laidlaw, executive producer Mark Darrah, Art Director Matt Goldman and Writer David Gaider were all at PAX and sitting on a discussion panel. Dragon Age III would feature an all-out brawl between the Templar and the Mages.
The player character, whoever that ends up being, will be travelling Thedas to gather allies and attempt to put an end to the conflict. The studio affirmed that an MMO is not part of their plans to further expand the BioWare created IP franchise.
Apparently the team is using Dragon Age II DLC to help fine tune the combat to help them decide what direction to take in the next sequel. For customisation of your party BioWare is presently treading somewhere in between Origins and II.
For more teasing morsels check out the RPG Site write up.