Today’s Sesame Street was developed Double Fine Studios

Since a departure from big AAA titles, Double Fine has put out two great titles in the shape of Costume Quest and Stacking. What’s next for the developer? Sesame Street. No, really.

Tim Schafer and co are working on a 360 game with Kinect support titled Sesame Street: Once Upon a Monster. The developer’s CEO states in today’s announcement: “Sesame Street had a profound effect on me, and many members of the Double Fine team, when we were children. So did video games. 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 labour of love on many levels.”

The game will launch later in the year. Cookies, gigantic birds, and dustbins have all been confirmed.