The developer behind Just Cause is creating its first multiplayer game for PSN and XBLA, CVG can reveal.
Avalanche is set to announce the title with its publishing partner in the coming week, and has built the game on technology from bigger simultaneous projects.
"We'll probably show the game at E3," Avalanche founder Christofer Sundberg told CVG. "It's original IP and a pretty cool little game. It's our first multiplayer title.
"There's so much work going into the tech and game design of our bigger, more risky projects, we thought that we could use that on XBLA and PSN; that we could use the same tech and experience to create something that costs about as much as one milestone payment for the bigger projects.
"We've built high production values on this title. It looks absolutely stunning. It's been such a success internally, PSN and XBLA is now seen as a very tempting world to go further into."
Swedish indie Avalanche has told CVG that it is ready to adapt to any new console announcement from Microsoft in the next few years.
In addition to its digital title, the studio is working on a number of bigger projects, including the licensed action game that Sundberg revealed to CVG last year - thought to be based on the Mad Max franchise.