This is a demonstration of the PS3-exclusive game Lair can be played via the PS3 feature “Remote Play” on the PSP.
According to the video’s author “when played on the PSP the game’s motion controls don’t work the game allows you to play via the thumbstick. When on the PS3 your analog sticks control the camera but on the PSP it controls all your movement. It’s pretty sweet, there are drawbacks though, you can’t use the 180-Turn or Power-Dash commands since they required special motion-control input. You also can’t land on the ground as that used the L2+R2 button combo. Other than that you can do everything else in the game.”
Check out the Remote Play in progress in this video:
For more instructions see the official PlayStation forums.