Sony says Little Big Planet has spawned the Play Create Share genre, of which ModNation PS3exclusive racing game is the second
The game is a kart racer in Sony's "Play. Create. Share." genre of games. Like LittleBigPlanet the focus is user content.
Stylized characters in the style of the vinyl figurines like Mighty Muggs. They're customizable, with mods, or full on outfit changes. The developers showed off a monkey character, as well as a Hellraiser-esque character.
The cars are also customizable, and the developers showed off classic style convertible and a pink dune buggy. You can completely customize your racer and their vehicle. They parts are all predefined, so it's fairly similar to how the creating stuff in LBP works, but you can make them a little more unique since they don't have to be a Sackboy.
Racing is pretty standard kart racing. Jumps, weapons, boosting and drifting. The style is cartoony, but there's a lot of 3D detail in the environments, character, explosions, etc. The racing is pretty fast and frantic.
There's also track creation, done in a nearly realtime way. Players "fly" through the map and the game paints a track behind the car. The thing is really fast, and the developers created a short, simple track in about 10 seconds.