I’m not certain what (or if) there is a limitation on how many levels can be created. I know the only thing the game makes mention of is that sounds created/collected on one screen are heard for three screens and then new sounds need to be added.
I would hope that someone from the Sony Blog or other internal group would help to foster and promote user created excellence. As with LBP and MNR, the community highlight seems to be mostly from a social branch of those development studios. Since Queasy Games is so small, I wonder if there will be anyone else within Sony that will step up and help to keep the game in the spotlight with weekly level promotions.
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