Two years after its release, Twisted Metal 2 was re-released as a PlayStation Greatest Hits game, however under the developer 989 Studios instead of SingleTrac.

In 2006, Los Angeles is in ruins and its citizens left to struggle for survival after the conclusion of Twisted Metal, a brutal contest held by Calypso, exactly one year earlier on Christmas Eve.

In addition to the remains of Los Angeles, drivers will also battle in Moscow, Paris, Amazonia, New York City, Antarctica, Holland, and Hong Kong.

[11] Critics generally regarded the game as an improvement over the original Twisted Metal due to its larger, more intricate levels[15][23] and better cast of characters.

"[26] Crispin Boyer wrote in Electronic Gaming Monthly that "I wasn't all that crazy about the first Twisted Metal, but this sequel is worlds better, even though it looks like the same old thing at first glance.

[27] The following year EGM ranked the PlayStation version number 64 on their "100 Best Games of All Time", commenting that "The sheer amount of different vehicles, levels and weapons available at your disposal makes for awesome multiplayer matches.

In Frosty Treats, Inc. v. Sony Computer Entertainment America, Inc., the U.S. Court of Appeals for the Eighth Circuit ruled against the trademark claims because they were either too generic or were unlikely to cause confusion among consumers.