Which Double Fine's Tim Schaefer describes as "a fully playable area that has all the things a level of the game should have: elements like player movement, combat, quests, experience, UI all working together with scratch dialogue and audio, some rough visual effects, textures, lighting, even a cut-scene". And it look good. Real good.
The in-game footage can be seen as part of a new behind the scenes video that covered the latest on the development of Psychonauts 2. Enjoy.
Although funded a while back, Psychonauts 2's prospective 2018 release window is now looking more and more likely.