SCEA Santa Monica creative director, and creator of God of War, David Jaffe is in the process of setting up a new studio with Incognito boss Scott Campbell, Develop reports.

At the weekend 1UP posted a report saying that Jaffe and Campbell were teaming up to put together a new company that will be based in Utah and that Jaffe will eventually be leaving SCEA to head up the operation.

However, Jaffe has dodged confirming the news himself, despite teasing readers of his blog with construction pictures from a new building, posting on notorious gamer forum NeoGAF that "I am still part of SCEA [...] I just got a paycheck from them! I am still 100 per cent a Sony employee and unless I got fired today and they didn't tell me, I'm still working for them.

Regarding Incognito and Utah, he added: "I love working with the guys at Incog and hope to work with them for a long, long time but I sure as shit ain't moving to Utah... nice as it is, I don't think I could live there long term and I don't think the good people of Utah would want me to."

Rumours about a potential shake-up for Incognito have been circulating for some time off the back of reports that SCEA was parting ways with the trusted independent that has produced a number of first-party PlayStation titles, with reports saying that the staff from the studio would break away to form a new outfit.