It is official Jon Favreau vacated the director's chair for Iron Man 3. In most circumstances this would be a tragedy, Favreau really help define the style in which not only Iron Man but the whole Avengers franchise would look on film. He gave the first two installments a quirky almost storybook quality that showed his background in fairy tale movies (Elf, Zathura) and was yet able to tell in with a straight face.
However there might still be hope for Iron Man 3 to hold its weight.
Shane Black has been slated to direct. Like Favreau before him Black has no experience directing a summer blockbuster before coming into the franchise. But he does have experience working with Robert Downey Jr. when he directed Kiss Kiss, Bang Bang. Kiss Kiss, Bang Bang was a sexy fun thriller that not many people watched but was nevertheless responsible for reviving Downey's career. So despite it all there are hopes for Iron Man 3.
Iron Man 3 is scheduled to be the first post-Avengers installment to be released in the summer of 2010.