Just bear in mind that nothing is official and until Visceral or EA comes clean on the whole issue, it's all just rumor.
That being said, this rumor is gaining more steam with every passing day. When we first heard about the possibility of a Dead Space FPS, we were a little surprised, but not shocked.
Now, as noted by OXM , developer Visceral Games has a new job listing for a "multiplayer designer with extensive first-person shooter experience," and the ideal candidate must be an "avid FPS gamer." It also says the job is "a major opportunity to contribute creatively to an exciting IP." Notice it doesn't say " new IP;" it seems plain they're referring to an existing name.
Add this to another job listing posted last month, where Visceral asked for a lead multiplayer designer with "architectural knowledge and experience making realistic world levels." At the time, the project in question was referred to as a "thrilling online action shooter game." It doesn't say FPS like the most recent job ad, though. As far as Dead Space 3 details, all we know is that it takes place on Tau Volantis and will star protagonist Isaac Clarke for the third and last time.
But what if they turned this into an FPS? I mean, if you really think about it, based on what we've seen of Resident Evil 6 , Dead Space might be the only true "survival/horror" franchise remaining. Well, with the exception of Silent Hill , but we all have our reservations concerning new titles in that series…