Needs a publisher and a fan base
Tim Schafer, the head honcho at Double Fine studios, says that the timing might be right for a Psychonauts sequel. Psychonauts 2, as it is now being called, could be a project that Schafer would really like to do; but the question is whether the first title has enough of a fan base that a sequel would be a money maker.
The first Psychonauts was never very successful at release, but the buzz about this game has built up over the years and it has become a very well pirated game. PC gamers are still able to get the title through Steam as a digital download.
So, assuming that a publisher out there believes that there is a sufficient fan base to buy the title and they are willing to put up the cash, it sounds as if Schafer and the crew at Double Fine are ready to develop the sequel.