The community-based game effectively lets players have a major say in the look and feel of their game and character via customisation and collaboration with other players.
The game comes with an initial set of levels but it will be up to the players themselves to take the game to the next step by generating environments themselves.
Characters can move anything in the gameworld and build new objects and items without a level design tool - everything is handled by the in-game toolset and gameplay itself.
And when players are done customising and changing the levels, they can share them with the world and let others play and rate them.
The game is devised and developed by Guildford-based Media Molecule, a team which span out of Lionhead after they created Rag Doll Kung Fu.
"We are confident that PS3 will be the platform to lead the way in creative gaming, and LittleBigPlanet brings the concept to life spectacularly," said Phil Harrison, president of Sony's Worldwide Studios. "By giving the players the power to shape and share an entire virtual world via PlayStation Network, we've created the space for PS3 owners to realise their creativity and craft their own unique experience."
A demo of the game is expected to arrive on the PlayStation Network this Autumn. The full version will hit in 2008.