Microsoft has acquired Psychonauts developer Double Fine Productions.

News of the deal was revealed during Microsoft's E3 2019 press conference. Double Fine, founded by Tim Schafer, is currently working on Psychonauts 2. The game will be available on Xbox Game Pass at launch, as with all titles developed by Xbox Game Studios.

Terms of the deal were not disclosed .

Double Fine joins a growing list of in-house Xbox studios. At last year's E3 it announced the acquisitions of State of Decay developer Undead Labs, Forza Horizon studio Playground Games, Hellblade creator Ninja Theory and We Happy Few outfit Compulsion games.

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