Turns out the rumors were true after all, God of War creator David Jaffe has formed a new game development studio named Eat, Sleep, Play with Scott Campbell, the head of Incognito Entertainment.

The Utah-based studio has signed a multi-title deal with Sony Computer Entertainment to create games exclusively on the PlayStation platform. In addition to the deal the studio will be creating Twisted Metal: Head On for PlayStation 2, scheduled to be released this Winter, featuring lost levels from Twisted Metal: Black Part II and a documentary on the series.

Jaffe made a blog post today on the matter but, expectedly, did not reveal what the studio’s first major project will be. God of War 3 is suddenly looking a lot more likely now.

Read more: Twisted Metal: Head-On: Extra Twisted Edition Unveiled, Jaffe Working On New PS3 Twisted Metal, David Jaffe: Next Title Not Making E3 Appearance, Jaffe’s New Title Expected In 2010, David Jaffe Preps Big Friday Announcement