According to a report over on VG247, LittleBigPlanet 3 is currently being developed by Sonic & SEGA All-Stars Racing studio Sumo Digital.
Apparently Sony and original LBP developer, Media Molecule, approached Sumo Digital and asked them to develop the third game, which has apparently been in development for “well over a year”.
No mention of what platform LittleBigPlanet 3 is supposedly being developed for, but with rumours of a PlayStation 4 announcement around the corner, some are suggesting that this may well be one of Sony’s next generation launch titles.
In the meantime, LBP creator Media Molecule is currently hard at work on a completely new IP in the form of Tearaway for PlayStation Vita. The last developer to work on the LittleBigPlanet franchise was United Front Games, who brought us LittleBigPlanet Karting.