We have now ramped up into full production mode! We have five full level teams working on the real world locations and brand new mental worlds, as well as our full gameplay team working on powers, platforming, puzzles, and combat... Now we are in full swing, we know a lot more about the size and scope of the game we are going to make, how long it will take us to make it, and the amount of time we need to make it be great.
Double Fine write that based on those metrics, Psychonauts will be missing its 2018 release and the game will presumably slip into 2019 at the earliest. However, there is no official launch window at the moment.
The new development update also introduced fans to Raz's family along with new art and teasers. Lastly, Double Fine gave an update to backers regarding their rewards, namely that rewards will be shipped in three parts: physical items that can be delivered now, physical items that can be delivered now but require long manufacture times, and items that can be delivered after the release of the game.
Psychonauts 2 is currently in development at Double Fine and will be published by Starbreeze.