Psychonauts 2 was announced at The Game Awards last year and takes place mere hours after the first game. In Tim Schafer’s Ask Me Anything! thread on Reddit, Schafer shares some of the story with fans.
During the time of Truman Zanotto’s absence (he was kidnapped) multiple changes to the organization took place by his second in command including financial cuts to research, fringe endeavors, and practices of necromancy. It is here that our hero Raz will deal with double agents, evils of the past, problems of his own regarding his family’s curse, and girl troubles.
(Psychonauts 2 concept art)
In an earlier interview with GameSpot, Tim says that there will be a game before the sequel. The standalone title called Psychonauts in the Rhombus of Ruin was previously announced during PlayStation Experience 2015, it will be directly after the first and before the second on PlayStation VR.
This title (SPOILER ALERT!) takes place at the end of the first game where Raz is just about to leave camp with his father when word of the Grand Head of the Psychonauts, Truman Zanotto, has been kidnapped. Raz and friends fly off in the Psychonauts jet to rescue him.
Psychonauts 2 release window is Fall 2018 on PlayStation 4, Xbox One, and Windows PC.