Warner Bros. Interactive Entertainment have sent along a curious new game announcement, revealing that Tim Scafer's Double Fine Productions are working on an Xbox 360 Kinect title based on the iconic Sesame Street children's brand.

Double Fine's recent releases include Brutal Legend and Stacking, following Schafer's legacy of 1990s games such as Monkey Island and Grim Fandango and now it's time for Elmo and friends.

“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,” said Tim Schafer, President and CEO of Double Fine Productions. “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.”

In a genre full of Nickolodeon shovelware and Pokemon Peach-Pear-Aquamarine, Double Fine and Sesame street could prove to be a winning formula for those parents wanting a game with a little more substance for their kids. Sesame Street: Once Upon a Monster is due exclusively for Kinect on Xbox 360 in Spring 2011 (U.S. Autumn).

A few screenshots can be found over here