Tim Schafer's Brutal Legend and Stacking studio Double Fine Productions is working on a new game for Microsoft's Xbox 360 Kinect -- Sesame Street: Once Upon a Monster.
The game is the first time that the San Francisco-based independent developer has announced work on a video game based on a licensed property.
Warner Bros. Interactive Entertainment is handling publishing duties, and plans to release the game in fall this year.
The game will let players explore a "living storybook" with Sesame Street characters like Cookie Monster and Elmo. The publisher did not confirm possible appearances of Big Bird or Aloysius Snuffleupagus.
Sesame Street: Once Upon a Monster is centered on kid-friendly problem-solving, relationships and "learning key life skills" throughout the course of the game. Using the Kinect sensor, kids will be able to see their movements represented on screen.
Double Fine CEO Tim Schafer said in a statement, "Sesame Street had a profound effect on me, and many members of the Double Fine team, when we were children. So did video games."
He added, "Now many of us are parents and we want to share with our kids the great experiences we had, but also the completely new ones made possible by cutting-edge technology like Kinect for Xbox 360. So it's a labor of love on many levels."
Other games Double Fine is known for include 2005's Psychonauts and last year's Costume Quest.