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I just got done watching the LBP2 part from Sony's E3 conference...and I have to say i'm pretty impressed that you can create pretty much any game you want with it.

So do you think Sony is using this to somwhat combat  Microsoft's XNA and the indie games section they have on live?

There are some differences though:

1. To use XNA to make games you have to pay MS $100 a year but you also have a chance of making money off of said games since you can put them on live for a small sum of money.

2. XNA is a program that runs on the computer (not a game)

3. Only people that have LBP2 will have access to the user created games in LBP2.

4. Other then the initial price of LBP2 itself you won't have to pay any yearly fees to make games (obviously lol)