Ī new tool to assist in gameplay creation is the 'Controlinator'. Multiple levels can be linked together, so that finishing one level immediately takes the player to the next. As well as including a wide selection of original and licensed music, the game also includes a robust music sequencer. New animation recording options are available and players are able to create cut-scenes to go with their level design, manipulate the camera for both cut-scenes and gameplay, and record their own sound effects for use in the level.

While still retaining the three-layer, 2.5D nature of the original title, with the player controlling their Sackboy characters, players are not restricted solely to platforming levels, and can choose to create many types of levels including racing, puzzle and role-playing games. Sackbots can be programmed to follow Sackboy. The game's online functionality was officially discontinued after a lengthy period of outage on 13 September 2021, alongside services for LittleBigPlanet (2008), LittleBigPlanet PS Vita, and the PlayStation 3 version of LittleBigPlanet 3. Support for PlayStation Move was added to the game through a software update in September 2011, allowing users to play the game using the PlayStation Move motion controller in conjunction with a Navigation Controller or gamepad. Unlike its predecessor, which was marketed as a platform game, LittleBigPlanet 2 was marketed as a 'platform for games'. Most of the more than 3 million levels created by users in the first game are playable and editable in LittleBigPlanet 2. It is a direct sequel to LittleBigPlanet (2008) and the third game in the series following a game for the PSP (2009). The game was released in North America on 18 January 2011, in mainland Europe on 19 January 2011, in Australia and New Zealand on 20 January 2011 and the UK and Ireland on 21 January 2011. The game is developed by Media Molecule, published by Sony Computer Entertainment for the PlayStation 3.

LittleBigPlanet 2 is a puzzle-platform game that features user-generated content.

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