Back in May, it seemed that Xbox could have been teasing a Psychonauts 3 announcement. However, now the founder of Double Fine, Tim Schafer has said that the game is not in development, and instead the studio is working on other projects.
Speaking on the Cressup YouTube channel, Schafer denies rumours that Double Fine is working on Psychonauts 3, and instead says the studio is working on other projects.
"I'm not working on Psychonauts 3," Schafer says bluntly. "We're kind of at the 'Willy Wonka, closed doors' phase," he said, regarding the studio's next project. "But soon we could open and cause a lot of harm to a lot of children, just like Willy Wonka."
It seems that there could be multiple irons in the fire, as Schafer does make reference to some "smaller" games, rather than one big project like Psychonauts 3.