Yup, LittleBigPlanet 2 exists. It's confirmed, it's real, it's releasing this year...and it looks incredible.
Though Sony hasn't provide a huge amount of detail, Eric Levine of SCEA has said that the sequel to LittleBigPlanet will have "loads of new features, including revamped graphics, a fresh storyline, added accessories and equipment for Sackboy, and much, much more", and added that he was only scratching the surface with this vague description.
Media Molecule seems to be claiming that a far wider variety of genres than ever before will be able to be created using LittleBigPlanet2's toolkit, which is allegedly very similar to that of the original, but with infinitely more depth.
Over 2 million community levels have been created for LittleBigPlanet in the year and a half since its launch. Among these countless levels have been several gems, made with what was admittedly a rather basic level creator. What's left to add? Well, the trailer can explain that far better than I.
Notice the variety of genres. The "intelligent machines and enemies". The claim that you can make not just levels, but entire games.
SCE's recent acquisition of Media Molecule can only do wonders for the small developer, as it did for Guerilla Games. And if Killzone can become Killzone 2.... what could LittleBigPlanet become? We'll just have to wait and see: the game is set to launch near the end of the year.