Twisted Pixel makes some amazing games. I would like to see them unleashed on a AAA level game.

what have they made before?

Splosion Man, Ms. Splosion Man, Gunstringer, and more. I've only played those 3 but they were all great XBLA games.

doubt they will be making an AAA game any time soon like you hoped, but it seems they going in that direction since now they are expanding into two teams.

@bananaking21
I don't necessarily hope they make a AAA game I just think it would be pretty cool for them to do so. I don't like the look of lococycle so I hope this other new IP is something exclusively for the Xbox One. I'd like to see something a little more ambitious than lococycle.

The problem with going from the games they make now to something big budget like Halo, require a lot more man hours and a lot more management.  Some teams can do this but such growing pains usually do not produce good results.  I would rather they take it slow, increase size at a normal rate and increase their output in a linear way that they can management.  Maybe after a few years tackle a really big complex project.

or they take advantage of the DD world and new business model that can be built around it.... instead of developing a 10 hour long with MP VG in 4 years with a big team.... just serialize your game.... release AAA games, chapter by chapter with different payement option. it cuts the production cost upfront requirements and spread your revenues over time and might even generate more revenue. if you price your chapter 5 bucks but release 20 chapters over 4 years you get a 100 bucks per full saga....
can put up season pass for 70 for every chapter for people that really digged it right of the bat... and do bundles and collector editions when the game starts to have a lot of chapter released or is over...
and people might even be more likely to pay at least the first chapter to try it out since they don't have to throw 60 bucks at you....
all in all that's what good indie dev should be doing and even big studios for risky new IPs that way something that really does work out can be stoped before it is a financial desaster or maybe even salvaged through players feedback....

that's one of the main reason I believe DD is not only the future of gaming because that is just a evidence I also think it is the salvation for VG future and the best way for us gamer to get what we want with a higher production value... and nothing prevents successful games to release on BR once they are done for the ones that really want the physical media or the one that don't the downside non transferable right of DD... and on top of that only really good or succesful game will be pressed....

Splosion Man 3 would make me very tempted to pick up and Xbox One...

Yes, that is another route a company can go.  Many devs have expressed that the 60 dollar model for games is not going to last and that the buying public is getting weary of.  Other means of getting out a top game that does not cause the developer to tank if it fails are good ways to help the industry.