Acting as a publisher.
It was an interview with Evan Wells I think. Was a looong time ago, and I've heard other devs say the same thing. That Sony is the only publisher who truly cares about innovation in the indie dev scene. They don't make you jump through a million hoops like Nintendo and they don't make stupid exclusive DLC-related threats like MS does (MS basically says "we don't want you on our platform if your game and its DLC is timed-exclusive on another system.") It's pretty simple, really. With the "Pub Fund" that they have, if they like what you're doing, they will fund and advertise the project as long as it remains a PS3/Vita exclusive.
The controversial part of LBP in Microsoft's eyes is probably the creation stuff and the huge community and network behind it all that would not work within the confines of Xbox Live. Remember, Xbox Live is a closed system. They wouldn't even allow Steam integration in Portal 2 or mods in Unreal Tournament III, which were both present in the PS3 versions. They wouldn't allow cross-platform play in either of those games as well, which was present on PS3. Xbox Live being a closed system means MS has all of the control, not the devs.
Sony’s stance appears to be at odds with Nintendo’s, which earlier in the year claimed it was “not interested” in working with ‘garage’ developers.