Original: They are also close friends with Naughty Dog and are currently working on Jak and Daxter: The Lost Frontier for PSP and PS2.
Simplified: They are making a Jak and Daxter game, called Jak and Daxter: The Lost Frontier, for the Playstation Portable. It will be the first Jak and Daxter game not made by Naughty Dog, who are also close friends of Insomniac Games.