A rumor started circulating on prominent gaming forums that Twisted Metal Reboot developer will no longer be Lucid Games following poor reception of Destruction AllStars by critics and audiences alike.
Sony confirmed that they are working on a reboot of the Twisted Metal franchise. The plan is to probably push out a new game to coincide with the TV show adaptation of Twisted Metal that Sony also has in the works right now.
Lucid Games, the studio behind Destruction AllStars, seems like a perfect fit to lead development on such a project. After all, they are already associated with Sony since their game is a PlayStation 5 exclusive. The game also happens to be a vehicular combat free-for-all deathmatch title in the spirit of Twisted Metal. But reports are now coming in claiming that the poor reception of the game made Sony drop Lucid Games.
Destruction All-Stars right now stands at 62 Metascore and 5.0 average of user reviews. The painfully average game suffers from an unfulfilling gameplay loop, lackluster customization, and rampant microtransactions.

Following the reception of their first standalone title, it seems that Sony is making the right call in dropping Lucid. Twisted Metal is a truly classic PlayStation title. Rebooting the franchise properly could lead to a line of successful new releases for Sony.
Vehicular combat games were always a niche, with Twisted Metal being the breakthrough mainstream success and its peak. The genre and the IP dipped in popularity heavily after the PS2 era ended. But now it seems to be resurfacing. With games such as Crossout, Destruction AllStars, and Rocket League (which draws inspiration from the genre) finding mainstream success and interested audiences.
But the question then becomes, who will fill in and become the developer of the new Twisted Metal reboot? Word is spreading that Sony moved development to one of their first-party studios in Europe. But who is the lucky winner remains shrouded in mystery so far. Seems like we will need to wait for some sort of official announcement by Sony.