The Twisted Metal series, which combined racing and crazy battle mayhem, has been a part of the PlayStation since its inception. We haven't seen her very often in recent generations. That was about to change with the upcoming live-service game that studio Firesprite was working on. According to report by Jason Schreier but we won't see her again.
Sony is laying off 900 employees across the company, with UK studio Firesprite taking a solid hit. It's also no secret that things aren't looking too rosy for the games-as-a-service that's in the works at PlayStation Studios. In addition to Last of Us Factions, another expected title was probably cut.
Although according to some reports the new Twisted Metal was close to completion, Schreier clearly says that it is the development did not get past the early stage and actually didn't even get the green light from Sony. However, this is not the end for Firesprite. Now they will focus their efforts on Project Heartbreak, which we don't know much about yet. According to unofficial information, the story for him is to be written by Pierre Sheret, who worked at Telltale Games during the studio's heyday.
PlayStation will not completely abandon live-service games as such. A multiplayer project from the Horizon series universe is still planned, and just recently they confirmed with Helldivers 2 that this model can eventually work very well. But for now, Twisted Metal fans will have to make do with the series adaptation, which is preparing a second series.
Source: Game Informer