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Sony - Rumours from GDC - View Post

non-gravity said:
In an interview with GameDaily BIZ in June 2008, Ted Price announced that Insomniac Games plans to expand and open a sister studio in North Carolina, with Chad Dezern taking on the role of studio director. Dezern will be hiring twenty-five to thirty new developers and will prepare the studio to begin work on games based on new and existing intellectual properties. - stolen of wikipedia

Doesn't seem big enough to have made a full-blown game by now

No, I agree. But it says developing, so all they could be showing is a few screenshots from a very early build. Heck, they could just be announicing the game quietly, throwing it out there, and then starving us for details for the next year.

I don't think it's likely, but I do think it's possible.