This is what Sony's been hinting at with their three teaser videos posted before this full length one.
From the PlayStation blog:
Over the past few days we’ve released three short teasers filled with clues and a suspicious 10/23/12 date. As expected, nothing gets past the faithful members of the PlayStation Nation, as you quickly pieced together that these teasers are about PlayStation All-Stars: Battle Royale.
Last year, we released “Michael,” a campaign which paid homage to you, the gamer. We like to think of PlayStation All-Stars as a continuation of that as it was made as a tribute to gamers, tapping into PlayStation’s legendary history and featuring some of the your most beloved franchises in our first ever cross-over fighting game.
We’ve created this short live-action film called “The All-Star” to celebrate PlayStation All-Stars’ upcoming launch. The film will debut tonight on YouTube at Midnight EST (9:00PM PST), but we wanted to give the PlayStation Nation an advanced screening.
To me, it doesn't beat the original "Michael" ad, which I think is one of the greatest video game ads ever, but I think it's okay and promotes the concept of PlayStation All-Stars well. Was definitely expecting more after those teasers, though.
Michael ad for reference: