It's a PSN game.
http://ps3.ign.com/articles/805/805612p1.html
http://ps3.ign.com/articles/805/805612p1.html
PlayStation Premier: Loco Roco PS3 Official
First look at Buu Buu Cocoreccho! by LocoRoco
by Anoop Gantayat
July 17, 2007 - A cameo appearance as part of Sony's Home announcement earlier this year was confirmation enough for many, but today Sony finally made it official: LocoRoco is coming to your living room. Tentatively titled Buu Buu Cocoreccho! by LocoRoco, this PS3 sequel is set to be made available as a PlayStation Network download.
We have just a few details at this point, and none of them shed any real light on what we can expect from the game. Sony describes the game as "It's LocoRoco, but it's not -- a peculiar extra chapter." That, and a sentence with three different uses of the world play: "Even if you don't play it [as in control the game], the world and the LocoRoco will play [as in both playing amongst themselves and as in playing back like a video] on their own."