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I think the bigger news was that Jaffe is leaving Sony's internal studios at Santa Monica to form his own studio with Former Incognito head Scott Campbell. Their new studio will be based out of Utah and called "Eat, Sleep, Play Studios."

http://www.gamasutra.com/php-bin/news_index.php?story=14867

They have an agreement to do 3 games for Sony. Twisted Metal is not considered part of the deal. It's a port.

Curious why Sony didn't get them to port Twisted Metal to the PS3 ...