With Twisted Metal just around the corner, you'd think the good developers of Eat Sleep Play would be drowning themselves in champagne and doing donuts on Sony's lawn. Instead, they're getting laid off and (in the case of co-founder David Jaffe) leaving to work on casual games, according to the Salt Lake Tribune.

Joystiq points our way to the article, which claims that eight employees have been laid off from the studio, and that Jaffe's "got some projects that he's excited about" in the casual space.

Meanwhile, on Twitter, Jaffe claims that the rumors of his casual transformation are "highly exaggerated." We'll have to wait and see if he goes from Twisted Metal's angry clowns and God of War's angry deities to something more akin to Angry Birds.

As fans, what would you like to see Jaffe pursue at this point? Looking forward to Twisted Metal? Let us know in the comments or on Twitter.