Looks like they are finally getting back to business. This is from donbluth.com:

We do have plans to produce a prequel movie to the game Dragon's Lair, a feature-length film, which will provide the audience with the backstory of the characters of that game, Dirk the Daring, Daphne, Mordroc, and the dragon, Singe. We have a slate of eight feature films we want to make, none are sequels. All are new concepts, either based on published books or are original stories we've conceived.