Kotaku: "Peter Molyneux still wouldn't give up the goods on his new game at the "Lionhead Experiment Revealed" panel, but he did give us a glimpse into how Lionhead let LittleBigPlanet slip through their fingers.
The studio that brought us Black & White and the Fable games has a creative process called "experiments" where anybody in the company can take a stab at developing a game mechanic or a piece of technology to be used in a future Lionhead game. The process sounds a bit more rigorous than Bungie pre-Halo 3; but it yields some pretty interesting results.
Molyneux showed off some of these experiments - ones that worked and ones that didn't quite pan out. We saw two prototypes of the dog from Fable II: the first was a rewards system where you could pet the dog a la Nintendogs (which Lionhead eventually chucked; and the second was a mechanic of having the dog run ahead of the player instead of following behind (the status quo in the final game).
We also saw a host of technical developments - like an aging system that applies a layer of wear and tear to everything in the world (murderizes the rendering rates), and a one-button combat system where the computer decides how the character attacks based on proximity to a target (which sort of made it into Fable II).
But the most interesting thing was a "tech demo" called "The Room" - made with love by Alex, Mark and Dave. As in Mark Healey, Alex Evans, Dave Smith - three out of the four guys that formed Media Molecule which went on to make LittleBigPlanet."