Tetsuya Nomura has played up the development of Kingdom Hearts 3 (or whatever the next game in the Kingdom Hearts series happens to be) in the latest issue of Famitsu.
Nomura, who directed the series, and is confirmed to be working on both Kingdom Hearts 3 and Final Fantasy Versus XIII (a game with an active combat system based on Kingdom Hearts) told the magazine that Xehanort's reign of tyranny is almost up, and that his story will be finished in the next Kingdom Hearts game.
The designer also said that he wished he could've given Kingdom Hearts 358/2 analog control—an impossibility due to the Nintendo DS's limited controls—and hopes to implement a versatile combat system in his next game.
Source: Famitsu