The announcement of a new Eddsworld game was made in late May of 2009. Edd stated: "I have also formed a group with Psycosis91 (Who codes Edd games) and TheWaves (Who made the intro music for MovieMakers) for the Newgrounds ‘Power of three‘ summer event - which basically means we shall be making a game together over the next few months, hopefully meaning it will be an awesome game!"
Word continued to be released on this game until mid August of 2009, when the game was officially dubbed "Kid Thulu" and was destined to be a platformer. Unfortunately, shortly after this announcement, word on Kid Thulu was all but made; the updates stopped around late September of 2009. Not one screenshot was released to the fans.
However, this has not stopped them from hoping. Recently, a thread was made on Eddsworld Forums concerning the mystery game and its future. It can be found here.
Although the debate continues, the majority agreement is that an Eddsworld game would fare better on a browser as a flash game rather than anything else. Regardless, word on the game has not been released in several months and until it happens, nobody expects anything from the Eddsworld gaming industry.
There has been rumor that production has stopped for the game.
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