Double Fine Studios - developer of Psychonauts, Costume Quest and Brutal Legend - has been snapped up by Microsoft. The annoucement was just made here in LA at Xbox's E3 2019 press conference.

It's the latest huge acquisition for Xbox Game Studios after last year's purchase of Ninja Theory, Playground Games, Undead Labs and Compulsion Games.

Double Fine's next game is the long-awaited Psychonauts 2, which received a glorious new gameplay trailer during the show. Not a new Windows Excel, as Schafer joked on stage.

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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.