Yes, there really is a Mobile Suit modeled after a teddy bear. Beargguy is from Model Suit Gunpla Builders Beginning G and it can fire a particle cannon from its eyes. Shin Dynasty Warriors Gundam has Beargguy in the game as a first print bonus.
Famitsu magazine also confirmed Legend Gundam and Destroy Gundam for Shin Dynasty Warriors Gundam. The game is slated for release on PlayStation 3 and PlayStation Vita on December 19.