Although for years, a third installment has been long rumored and speculated by fans of the previous two films and many others[who?], it was officially announced by Universal Studios Home Entertainment during the summer of 2014 that a third film was in the works. The budget for the CGI effects work for Drago alone was done on a budget of $7,000,000.
Raffaella De Laurentiis who has previously produced the first two films has reprised her role in development as a producer for the third installment of the trilogy. Her stepson, Matthew Feitshans is a screenwriter and development executive regarding storytelling and he has been chosen in position as the writer for the film. In addition, this is actually his first film that he's writing for.