The game is being developed by Vancouver-based Hothead Games. Built upon a heavily-modified version of GarageGames' cross-platform Torque game engine, Penny Arcade Adventures is, as the title suggests, an adventure game in the classic style made popular by Sierra back in the day with such games as King's Quest and Leisure Suit Larry. Though it is based on Penny Arcade characters, the story is set back in the 1930s, in the classic detective mystery motif.
Hothead's modifications to the Torque engine have allowed them to pull off some impressive visual tricks, such as seamless transitions from a 2D, cel-shaded, comic-book-style view used in cutscenes, and the 3D game world.
Naturally, Hothead has been working closely with the creators of the Penny Arcade comic strip. Every line of story and dialogue in the game was written by Penny Arcade writer Jerry Holkins. As big fans of the classic "Sierra" adventure game genre, Hothead and the Penny Arcade guys were excited and fortunate enough to be able to work with Ron Gilbert, co-creator of the classic Monkey Island series that helped define the genre in its early days.
The game is still a couple months away from release, but we'll have our hands on a prerelease copy in the near future. Stay tuned for the IMG preview of Penny Arcade Adventures, coming soon to a website near you.