Tim Schafer's Double Fine Productions – maker of Costume Quest and Stacking - is creating a Kinect-enabled Sesame Street game for Warner Bros. Interactive Entertainment.

Really.

Sesame Street: Once Upon A Monster is described as an "uplifting storybook romp" and an "active, family game". It'll launch this autumn.

"In a truly original interactive experience, young players join Cookie Monster, Elmo and other Sesame Street characters as they explore a living storybook titled Once Upon a Monster," reads the excited official blurb.

"In the book, they make new zany monster friends from the Once Upon a Monster world and share in their adventures, solving problems, forging friendships and learning key life skills along the way. Parents and children literally become part of the whimsical storybook adventure by getting active together through dancing, jumping, flying and more. "

Here's what Psychonauts and Brutal Legend creator Tim Schafer had to say: "It's great to be working with Warner Bros., especially on a game like Sesame Street: Once Upon a Monster, which brings together so many things we all care about.

"Sesame Street had a profound effect on me, and many members of the Double Fine team, when we were children. So did videogames. 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."

In a July 2010 interview with Eurogamer, Schafer discussed Microsoft's motion-sensing Xbox 360 add-on.

"It'll work with games that were, from the ground up, conceived to be Kinect games," he said. "Not ports of existing games. That's what we haven't seen yet. All the new games that would be imagined for the Kinect."