The existence of a "Super Smash Bros-like" game featuring Sony characters has been circulating for a while, and just recently the potential name was leaked by some domain name registrations. Now we have it officially that PlayStation All-Stars: Battle Royale is coming this year to the PlayStation 3.
Admittedly I was very dismissive at first. Mostly because of Geoff Keighley's massive over hyping for this game but what I saw did excite me. I've had some very fun times with Super Smash Bros. but the Wii game left something to be desired. While Sony doesn't have as many iconic characters as Nintendo, the gameplay and levels do look compelling.
So far they have Kratos, Fat Princess, PaRapper the Rapper, Sweet Tooth, Sly Cooper and Radec from KillZone. There will be more characters revealed from Sony but third-party characters will also be included. We'll likely hear more about that at E3. I'm sure Ratchet, Drake, Jak will be in the game but I'd really like to see Nariko from Heavenly Sword.
The levels look really interesting, visually and from gameplay. In the LittleBigPlanet level the world is being built from scratch around you. And in a level with Hades from God of War, the characters from Patapon are in the background fighting him off. It looks like these guys are having a lot of fun with this, I hope it turns out well. You can see the first gameplay and an interview with the developers over at GameTrailers.