Considering it has happened before but every controversy wasn't instantly spread so quickly around the interwebs back then so l wouldn't suggest it as a hoax. Now the recall and such instead of a patch and later copies being amended is probably just for the controversy but that's free advertising so I can't really fault them.
I doubt LBP is just Sony's Viva Pinata. It has a much larger marketing push than VP ever received as well as being in a more accessible genre. Aggressive bundling in Europe and Japan should help it along as well.
Nerds and technophiles like to create and play videogames. There might be more cross over than you think. Summing this game up to people as Mario + Gary's Mod instills a ton of interest.
LBP isn't terribly big budget unless youre adding in advertising costs. A 2 year 30 man(at the height of development team) is far less than most HD console projects.
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