One of the first pieces of news to come out of PAX is the announcement of Penny Arcade Adventures Episode 3. Originally cancelled by Hothead Games, the third game in the On the Rain-Slick Precipice of Darkness series will be developed by Zeboyd Games, the developer of the Xbox Live Indie Games and Steam releases Cthulhu Saves the World and Breath of Death VII: The Beginning. The image below shows Zeboyd Games sporting a Penny Arcade Episode 3 t-shirt.
Episode 3 will be released in 2012, with more information about the game being shown at PAX East. Penny Arcade's Gabe and Tycho are confirmed as playable characters and the game will feature side view combat different from Zeboyd's past two games. The graphical style will be a 16-bit style similar to that of Final Fantasy VI. Music is being developed by Alex Mauer. There are no specifics on which systems the game will be released on, but the developer is aiming for "as many systems as we can!" Zeboyd Games will begin a development blog on the game shortly on the company's site.