I've been getting a lot of email concerning Mortal Kombat 3. First of all, Mortal Kombat 3: Domination appears to be the pet project (Project Domination) of the webmaster at Mortal Kombat Dominion. The webmaster plans for it to be an online audio/video/still movie novel. It's title has also been changed to The Requiem of Dragons. This is not the official sequel to MK2.
Threshold Entertainment is playing with the rumors on their website (in case you're unaware, Threshold Entertainment recently wrestled the rights to MK back from New Line Cinema). Basically, they're running a poll: "There is a rumor going around that one of the most awesome Mortal Kombat fighters will die in the third movie. If that were the case, which even MortalKombat.com isn't sure about, who would you want it to be, if it had to be somebody?" and have set up a bulletin board to let people post their thoughts on the MK3 rumors (Fact or Fiction?).
Also, posted back in February on Threshold's MK Website:
"Over the past few months, several MK veteran actors and actresses have been seen coming out of the Threshold offices in Southern California. But many questions remain since there has been no official release date for what would be the third in a trilogy of martial arts-science fiction blockbusters. Chris Cassamasa, Daniel Bernhardt and Red Williams were three of the male martial artists to pay a visit to the producers, all looking in excellent shape. Two actresses familiar to the realm of MK included "Playboy Playmate" Sung Hi Lee and Olympic Tae Kwon Do gold medalist Dana Hee. But perhaps the most surprising of the movie stars that were rumored to have spoken to the producers included the original Rayden himself, Christopher Lambert. Are the wheels finally being set in motion? Although there is no definite or concrete news to report about MK3 at this time, when there is we can guarantee you'll hear it here first."