Sony and Media Molecule have reportedly outsourced the development of third main installment of the franchise to Sheffield-based studio, where it's been in development for "well over a year".
There aren't any more details at this time, and there's no mention that this is being developed as a next-generation title. But giving the keys to Sackboy's kingdom to another studio wouldn't be without precedent – both the series' PSP and Vita versions were handled by other studios, and LittleBigPlanet Karting was made by United Front Games, the team behind Sleeping Dogs. It would, however, be the first time that a core installment in the series would be entrusted to another developer.
Media Molecule is currently developing Tearaway, its paper-craft style adventure title for PlayStation Vita