I love the design of this little game. It all happens in a 2-D world made out of fabrics, yarn, buttons, embroidery, etc etc. Ever seen an embroidered little character catch an felt dragon with buttons for eyes, by catching it with a wool yarn lasso? 
Trailer is blocked in the US I guess. any other links?
Epic Yarn at IGN.
That looks like a lot of fun. I always liked Kirby, so I"ll be keeping an eye out for that.