According to some sources at Loot, Sony is poised to release a Machinima Utility for PlayStation Home. The reports say this could be realized within a couple of weeks. The developer of the project wanted to combine the best aspects of home: social activity and interactive experiences. Perhaps this will be a bit of a pre-E3 surprise, but until then we will have to file this under rumor. The video below pretty much confirms this!
Instead of making a traditional game, or even an ARG (which is the way a lot of Home development was going), we wanted to make something that would really encourage the player to get together with their friends and have some fun. Being spawned from a movie company, it is pretty easy to see how we were inspired to make a movie stage/set. It’s really cool to walk through the lot every day and peek inside the huge stages, so we figured that other people would be psyched to have their own stage and even make some movies, too. After that, we went crazy putting all sorts of lighting and camera controls, green screens, backdrops, etc in the limited amount of time we had.
[Update] The Application is called StageSet
[Source]