Rumor has been confirmed; the Myth III team was dissolved on November 2, 2001. Andrew Meggs wrote a long post in the Myth Village forum addressing some key issues about the team and Myth III:

The entire Myth III team was terminated on November 2, 2001. The basic reason was that there was no next project lined up and funded, nor was there expected to be in the near future, it's expensive to keep a team of salaried people around doing nothing, and Mumbo Jumbo was not a huge business with infinitely deep pockets. There's a tangled web between the Mumbo Jumbo Irvine project team, its parent company United Developers, and the game's publisher Take 2. I wouldn't blame anyone specifically for the collapse -- call it everybody's fault if you're the angry sort or nobody's fault if you're charitable.

There are obviously still some things that need to be taken care of. Those of us who devoted the last year of our lives to this game want to see it succeed and find a way to address those issues. In the last two weeks people have been forced to devote their time to finding other jobs or projects and generally figuring out how to feed themselves and their children. Very little work has been done on anything Myth-related in the past two weeks because of that. The lack of computers, desks, and net access has also been a contributing factor for many former team members.

There's more to the post than this, so head over and see if you can get your question answered.

Here's wishing to a strong comeback for the former Mumbo Jumbo employees and a finished Myth III.