According to IGN, Mortal Kombat III will be going into production in Louisiana. Based on reports from the Baton Rouge newspaper The Advocate, not only does Threshold Entertainment plan to shoot the movie in that state but they are also going to build a 100,000-150,000 square foot production studio that would also serve as a tourist spot.

"I believe there's an extraordinary opportunity to build a state-of-the-art production studio-slash-Hollywood theme park and training facility right in the middle of town.” Threshold CEO Larry Kasanoff stated. “ ... There would be actual movies being made there, and an observation platform to watch."

Costs for the whole operation are estimated at $150 million. 

While Mortal Kombat III is being shot in Louisiana it may not be done at the new production outpost simply because the construction of the facility would not be completed in time. Actors from the previous films are currently in talks to return for the third installment.