Pretty big, but slightly predictable, news coming out of Media Molecule today. Sony's acquired them for an undisclosed sum. That is -- Media Molecule are now officially first-party developers under the SCE Worldwide Studios banner, which I believe is 21 studios strong now. In just Europe alone, Sony is in control of Studio London, Studio Cambridge, (a smaller) Studio Liverpool, Evolution, BigBig, Guerrilla and now, Guildford's Media Molecule. Quite a dream-team; that they could probably only improve by adding Quantic Dream.
 
Whether this signals Media Molecule are set to release something else is unclear, but it certainly seems likely if Sony has acquired them. I doubt they're buying them for more LittleBigPlanet DLC which seems to have fizzled out a little in 2010.
 
I'd place bets on a new Media Molecule game being announced this year. Whether or not it'll be a new LittleBigPlanet or not, we'll see. I'd imagine them doing something slightly different with Sackboy though.
 
Good news for MM and Sony though. Congrats all around.

Oh, I thought they were already first-party.

Sonys first party is mind blowing. Great job in buying MM

LittleBigPlanet was a fun game, but if they make more games, I want something different.

Good on Sony for picking them up while they're cold, so to speak.

Saw it coming. It makes sense. God Sony has a powerful first-party workforce.

Some people are hinting that this announcement and the impending GDC lectures are no coincedence. Like I said in the original post, Sony definitely aren't picking up Media Molecule for LittleBigPlanet DLC (I think the press release even states something like "exciting new projects"), and given how quiet that's been I'd imagine Media Molecule are working on something. I don't think there will ever be a LittleBigPlanet 2, but I certainly don't think we've seen the last of Sackboy.
 
I'm just wondering if we might see something for Playstation Motion Controller/Arc from Media Molecule. We know they're familiar with the tech as they had motion controls for LBP at last year's TGS.
 
Wasn't LittleBigPlanet announced at GDC in 2007?

Wise move by Sony, MM is easily one of the best devs. 
 
I've read they don't plan on making LittleBigPlanet 2 anytime soon. Instead, they'll just keep adding to the game, like they did recently with adding water.
 
So I don't think they'll do a sequel, but I wouldn't rule it out. Last year a layer glitch or the "3D" glitch which gave you 50+ layers to work with rather than the standard 7. To this day MM still hasn't patched it so some think maybe they're beta testing us for a background editor in the sequel.