The rumors have persisted for months and really heated up in June when 1UP reported that David Jaffe would form a new developer with Incognito Entertainment head Scott Campbell. Earlier this week, Jaffe teased on his blog that a "big" announcement would be coming on Friday. And here it is.

Sony Computer Entertainment America (SCEA) has indeed confirmed that David Jaffe is now the former Creative Director for SCEA Santa Monica Studios. The God of War and Calling All Cars creator has teamed with Incognito's Campbell to form Eat, Sleep, Play � a new developer based out of Utah. The company has partnered exclusively with SCEA on a multi-year, multi-title deal "to create titles for the PlayStation family of products, with the first slated for release in 2008."

SCEA also said that beyond the multi-year, multi-title deal, Eat, Sleep, Play will also develop Twisted Metal: Head On for PS2 (scheduled for release this winter). The game will feature lost levels from the never released Twisted Metal: Black Part II and a documentary on the series. Jaffe and Campbell have a history of collaborating, as the two co-created the Twisted Metal titles.

"We are extremely pleased to be working with David and Scott and supporting them in their new endeavor," said Shuhei Yoshida, senior vice president, product development, SCEA. "Through hit after hit, they have established themselves as two of the most talented individuals this industry has ever seen, and I look forward to seeing what kind of further gaming innovation they can bring to the PlayStation brand through our new development deal."

Campbell's Incognito (a studio under the Santa Monica Studios banner) is currently working on the PS3 online-only Warhawk, directed by Dylan Jobe. SCEA noted that the core members of the Incognito team responsible for Warhawk won't be going anywhere; they'll remain within the SCEA Santa Monica Studios fold, headed up by Dylan Jobe, and will continue to produce content for the game.

[UPDATE] Shortly after we published this, David Jaffe put up a new post on his blog. Jaffe revealed that the deal with Sony is for 3 games on handheld/console. Although the company is in Utah, Jaffe said that he'll actually remain in his home office in San Diego. Interestingly, he did meet with other companies besides Sony.

"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," he said.

"But it's what we wanted: to go independent and see where we could steer our very own ship. Granted, our new ship is no longer the grand, unstoppable beast that is Sony. Instead, it's a smaller vessel, scrappy even, manned with a crew of experienced sailors who felt the need to venture out into the unknown seas and and see what we could see. And the cool thing is, a small as our ship is, it's not the least bit scary. It's exciting as hell. It feels right; like the time is right, the crew is ready, and the grand voyage is just beginning."