ESP are developing a new Twisted Metal game. Jaffe semi-confirmed it in 2008, we all know, and he knows that we all know. The problem is that he isn't allowed to talk about it until Sony gives him permission, so he is forced to deny everything about the game's existence (though he's given more than enough subtle hints reconfirming what the game is)

Look at what he said here, though. He is responding to a rumor that states "Twisted Metal: Harbor City" will be announced at E3. He flatly denied that he is working on "Twisted Metal: Harbor City" but that does not mean that a Twisted Metal game is not what he is working on at the moment. As for whether he and his game will be at E3, he's sent mixed messages, so I have no idea.

i don't know about all of them but he has responded with very vague non-conclusive response before.  despite what was posted he didn't actually deny makign a twisted metal game either.  he denied making twisted metal: harbor paradise (or something like that) which was a canceled ps2 project i guess.  so that still leave a window open that he's working on twisted metal: something something.  honestly, i think he just like toying with us that sick bastard.

edit: source rumor: http://vgchartz.com/forum/thread.php?id=108019&page=1#26

GOOOOOOOOOODAMIT D:

I REALLY WANT TO KNOW

*shocked face*

David Jaffe not announcing something......unheard off.

David get off your high horse and actually do something you worthless prick.

Disappointed I am...

He's stated in the past that his game won't be revealed at E3 because it's too "small". He's also mentioned before that ESP's title won't be a full fledged title.

I'm not sure if he means it will be an online only game, a PSN games or maybe a game that will retail for only $40.

He's also mentioned numerous times that he's not working on a new TM.

But who knows, he may well show up at E3 with a fully fledged new title, or a new TM.

We'll have to wait and see.

For those doubting that he's working on TM, this is complete confirmation from way back in 2008:

http://kotaku.com/353706/jaffe-ps3-twisted-metal-next-project

It's because it's not Twisted Metal: Harbour City as people think it is, didn't make sense to revive that project to me, either.

He'll probably be at E3 though. I'm guessing he's lying. If he's in a position to tell people that the current E3 list going around is wrong, he's probably involved with E3 stuff.

Could have cancelled it.

This guy is getting annoying, he needs to either announce something worthwhile or just shut up until he's ready to announce something.

He's been doing this whole mystery game thing for like a year now and it's getting kinda old.