Microsoft has confirmed that the Band 3 will not see the light of day, but this does not mean there are not some prototypes knocking about.
A WC reader has posted some photos of the mythical device in their forums, and reports the 3rd generation of the device was meant to address a major deficit of the earlier bands, being waterproof and suitable for swimming (with a swim tile.)
It would also said to sport a new EKG sensor and feature RFID capabilities.
As far as we know Microsoft is now out of the fitness tracker racket, giving the Band 3 the same status as the McLaren – a device which may have fixed everything if Microsoft was simply committed enough.