Microsoft Drops Psychonauts

Following in the wake of yesterday’s XSN announcement and the decision not to publish the next Oddoworld title, Microsoft officials have also announced that the company will not be publishing DoubleFine’s Psychonauts. The developer is now courting several third-party publishers. Developed by ex-LucasArts alumnus Tim Schafer, little has been seen of the title since it was announced over two years ago. Despite the distancing of the two companies a statement from Microsoft has spoken in glowing terms about the project, which is still expected to remain an Xbox exclusive. Source: IGN