The studio has been formed by three graduates from Teeside University's computer games programming and design course and plans to specialise in three areas.
The first is the sale and distribution of its rapid application development toolkit, called LOGIC; second is producing original games using the tool; and third is to offer the team's services to other studios.
Twisted's Production Director, Graham Bryan commented: "Our development team has a range of revolutionary games and applications conceived, devised and prepared, and in the process of completion.
"We are also working on fully licensing our LOGIC toolkit to empower developers to produce high quality software with noticeably lower overheads. It's an incredibly exciting time and the entire team is looking to the future with great confidence."