In addition to announcing PS3 Home at GDC 2007 Sony also showed off a really cool looking game called Little Big Planet. The game is a side scrolling puzzle game with sandbox elements to allow users to create their own game.

Update:
Cool Video Demos of Little Big Planet Available

Using the game and the PS3 physics processing players will make their own worlds and puzzles which they can play and upload online for other PS3 owners to try. The Sixaxis controller is used to control your characters movements in the game.
The game is part of Sony’s “Game 3.0” initiative and will be available on Blu-ray disc. Gamepro says the game has high-end graphics, realistic physics and simple game play. Little Big Planet sounds pretty cool no word on when the game might be released at this time. Story and image via Gamepro.