Their new studio called "Eat, Sleep, Play" will be designing multiple games, exclusively for the PlayStation family of products. The first project is planned to release in 2008. In addition, the company will also be releasing Twisted Metal: Head On for the PlayStation 2, which will feature new levels not found in Black Part II, and a new documentary.
Additional details aren't available yet -- but we're hoping that Jaffe and Campbell will be able to create games with just as much energy and creativity as they did when they were part of Sony's internal studios. The fact that they're still working exclusively with Sony is a huge win for us, and we can't wait to see what comes to fruition.
[Update: Jaffe has updated his personal blog with some more info: "Again, we are working with Sony and that just feels great. We met with some other interested parties but at the end of the day, Sony is our home, our family, and we're really thrilled and honored they wanted to work with us and continue the relationship we've spent almost 15 years cultivating. So in many ways, it's like very little has changed, other than the pay cut."]