As we told you previously, Forza Motorsport 3 is coming to the Xbox 360. It seems that while we know that it is in development details of when Microsoft will officially announce it have been sketchy. Now, according to our sources, Microsoft is set to announce Forza 3 for a holiday release this year at E3.

From what our moles tell us, Forza 3 will cover two discs and offer over 400 vehicles and 100 different tracks to race them on. New graphics and car deformation will highlight some of the new enhancements over the previous version. In order to make the title more accessible, the game is said to feature an all new assist system to help those just starting out get the hang of the game.

From what we hear this could be the largest racing title ever produced for a console system. With two discs you could certainly have a lot to do, with over 400 vehicles and 100 tracks. We hear this will be the dream title for those who have been waiting for the definitive racing game. We look forward to the announcement by Microsoft at E3.

By the way, we continue to hear rumors of a video for Forza 3 that is making the rounds, but you will have to find it yourself, as it seems to be disappearing as fast as we can find a link to it.