If the Kyro III is going to be released at all, it will probably be delayed for some time until PowerVR can find a new partner to lay out and manufacture the boards. All in all, this doesn't look good for the Kyro series of chips. ATi and nVidia are already at least a full product cycle ahead of them, and it will probably be another product cycle before PowerVR can get their next board out (which probably will be a souped-up Kyro III (series 4) chip, if anything at all). I hope someone other than nVidia (which is already too powerful) or ATi (which has somewhat questionable software/driver support for their products IMO) decides to buy STMicro's graphics department.
Nick