The ZDNet article is one of the stupidest things I've read in a long time. The article is premised entirely on two facts: (a) the author asked Microsoft whether a Band 3 would come out, and the MS spokesman did not say one way or the other; and (b) a source confirms that no new wearable will come out this year. From these two facts, the author concludes that MS probably will not release another band.
Major logic fail. If MS is planning to release Band 3, I would expect their reps to say the same things they told the author. Company spokespeople aren't allowed to say, "yes, we're going to come out with a product" if the product has not yet been announced. And whether a Band 3 is coming out this year says nothing about whether it is coming out next year.
Major logic fail. The author should be embarrassed.
The fact that the MS spokesman said they are committed to continuing to explore the wearables market suggests to me that they are, in fact, working on another wearable product. That would suggest a Band 3, although I suppose it's possible they're working on some kind of SmartHat or a SmartShoe. But my guess is that we'll see a Band 3. The Band 2 is a great concept, even if they need to do a better job on the execution.