This game called Papo & Yo by Minority Studio is about a brasilian kid in a favela and his two weird companions... it's a puzzle oriented game as far as I see. You have to find a cure for a poisonous-frog addicted monster (the main character's best friend) because it wants to kill you everytime it eats one. The awesome part of the trailer starts at minute 1:05.
The game will be launched in 2012 for the Playstation Network. Hit the jump for a video of the E3 gameplay demo. Enjoy!