Earlier today Sony announced its new EyeToy camera, called simply Eye, with improved resolution and audio functions. EyeCreate is a video editing software that comes free with the camera and is developed by Brighton-based Zoe Mode, owned by Kuju.

The software lets users save and edit photos, video and audio clips to the PlayStation 3 HD.

Also: "It plugs into a YouTube-esque back end and will include a number of upload and community features as well," studio head Ed Daly explained to Develop.

In Sony's so-called Game 3.0 era, the software seems to be a perfect fit for PS3, added Daly: "There's a whole raft of functionality we can give players with this software when it comes to user-generated content. You can use the camera and microphone to make home movies, or even make stop motion films."

Zoe's in-house R&D/prototyping team, responsible for EyeCreate, has been hard at work on a number of smaller projects for Sony, including the games built into Home's virtual arcade cabinets.

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Of those, Daly said: "It's really, fun - pure old school stuff. You'd never get a chance to make anything like that elsewhere in the industry these days."

Zoe Mode has also made a number of Sony titles for the first PS2 EyeToy and other peripheral-led game SingStar. It's next game is the PSP game Crush for Sega.