Lair by Factor 5
Factor 5, known for its lush Star Wars games for the GameCube, is developing Lair for the PS3. Basically, it’s a game with lots of slimy looking dragons. The trailer is brief, and just shows a very icky looking dragon flying about, fighting another dragon, and joining a legion of other dragons (not necesarily in that order). SCEA has learned their lesson from E3, and at the beginning of the trailer it says that everything therein consists of in-game footage.
The Factor 5 website has no information about Lair, just pointing to the IGN website.