Chalk this one up as a LittleBigWin for LittleBigPlanet fans. A Sony representative has posted on the official European PlayStation forums to clarify the region locking issue, stating that "there will only be one region for the game.... a LittleBigRegion."
"The confusion arose out of regional differences in how moderation will work as there are different legal rules each region have to play by, and at one point this looked like it may require the game to be independent in each region". Thankfully, this was unnecessary in the end. So you can stop fretting now; your level creations will be playable worldwide and, perhaps more importantly, we're going to have a huge selection of content from all different cultures to play with soon after launch. Is it October 29th yet?
[Thanks, Benny Boy]
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