Was gearing up to head to PAX and just saw this on Evil Avatar:

Penny Arcade and Hothead Games Join Forces to Create Video Games Based on the Penny Arcade Characters and Universe

Bellevue, Washington (August 25, 2006) — The creators of online ultracomic Penny Arcade have joined forces with Hothead Games, an independent and experienced video game developer, to collaboratively create video games based on the Penny Arcade comic.

The first game, entitled Penny Arcade Adventures: On the Rain-Slick Precipice of Darkness, will be a comic adventure game initially available for Windows, Mac OS X, and Linux, followed by a version for next-generation consoles. The game will be available by digital download, delivered in episodic format with new installments of the adventure coming out several times a year.

Good chance this was the big news to be announced at the show. Bummer it was released early, but doesn't take away from the fact that it could be a great deal of fun. Crossing my fingers and wishing everyone involved the best of luck!