While working on TimeSplitters 4 they went under. At that time they were speaking with publishers asking if it was the right time to publish. They all said no so i believe it is time for them. A year is a long time in game development.
I agree, I never really thought Crytek was going to make Star Wars: Battlefront III. To me the most likely company to be making Battlefront III is Spark Unlimited. But I guess we'll just have to wait until E3 right. 

Hope Rises, So Trust in the Force. Battlefront WILL RETURN!
Yea like... LucasArts told Free Radical to get lost and then LucasArts are calling them back and redo all that 2 years of wasted work (now Crytek UK)????? No, I don't think so.
Spark Unlimited are developing the game.
Spark Unlimited are developing the game.
YouTube - BF3Enthusiast
Twitter - spartacus128
Twitter - spartacus128
Plus a Crytek UK and former Free Radical employee mentioned that the game is no longer in development and that LucasArts can go jump!!!
(Free Rad's BF3)

YouTube - BF3Enthusiast
Twitter - spartacus128
Twitter - spartacus128