According to the latest statements by Tim Schafer, leader of the software house acquired by Microsoft last year, the work is now focusing on the polishing phases, since Psychonauts 2 includes all the content he needed:
"2020 does not has certainly accelerated the development process, but by now we have basically everything in the game ", his words to IGN USA microphones. "We are close to finishing the work, for the most part we are carrying out cleaning operations of existing content".
In the same interview, Schafer spoke of the possible involvement of Double Fine in the exhumation of Banjo-Kazooie, Microsoft's iconic series left dormant for several years now. Although it is now an integral part of Xbox Game Studios, the company doesn't seem very keen to take over the IP:
"It's interesting to think about it, but I think it's not the best for Double Fine, because that that we do well is make things up. People have somehow got it into their heads that we have to play a Banjo-Kazooie game. Why should we do it? Have you ever heard of this studio called Rare? I think they are still in ride. It's nice to think about it, and it's nice that people connect to us the colorful and fun platformers to play. But ... We will do something new that you will love as well. "