One of the divisions in Sony’s Japan Studio is working on Knack, which is being developed internally. There’s another team called the Japan Studio External Development Department group that partners with other companies to create games like Soul Sacrifice (developed by Marvelous AQL) and rain (developed by Acquire).
The External Development Department is working on a PlayStation 4 title, according to a report from Famitsu. This group also has Badman G, Destiny of Spirits (Q Entertainment), Over My Dead Body 2 (Alfa System), Freedom Wars (pictured), and Soul Sacrifice Delta in production.