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UPDATE: Capybara's mysterious project has been revealed as Capy Fine Racing GP, a retro-themed OutRun-style racer.

As the title suggests, the game will also include characters from Double Fine games, such as Brütal Legend hero Eddie Riggs.

The racer is designed to be a promotional item available from the two developers at PAX East (the studios are sharing a booth). The game comes on a 3.5" floppy with a Steam code printed on the label.

"We only made 200 boxes, and even then some of the floppies might not work, but the people who buy them will be allowed and encouraged to share the game," Capybara co-founder Nathan Vella told Edge.

"While it's totally a real game, it's also not at all a real game."

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ORIGINAL STORY: Might & Magic: Clash of Heroes developer Capybara Games has released the first image from its next game.

The untitled project is set to be revealed later this week at PAX East.

There are few other details about the game, other than its retro-inspired pixel art style.

"You guys. New secret Capy game being released. In a special way. At PAX East 2013," Capybara wrote on its official Twitter account.

The developer has been busy of late - since porting Clash of Heroes from DS to PC and console, the studio has released acclaimed indie adventure Superbrothers: Sword & Sworcery EP. It also has bonkers shooter Super Time Force is in the works for Xbox Live Arcade, too.

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Tom Phillips

Tom Phillips

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Tom is Eurogamer's news editor. He writes lots of news, some of the puns and all the stealth Destiny articles.