Lair: July. Demo? Probably July, too.
What we'll tell you is that the gameplay, from what IGN said, is shaping up pretty nicely. A large set of unlockable/learnable moves keep the battles fresh and while using your fire-breath is useful at the beginning of the game, later enemies will be all but invulnerable to fire, forcing you to rely on physical strength.
The SIXAXIS controls are reported to still need "a little work". Understandable -- no one wants to accidentally turn 180 degrees when they're trying to smash heads with another dragon. But that's why it's just an alpha-build. Plenty of time to fix that up! Another point of note is the implementation of trophies for use in PlayStation Home. Yep, before Home is even released, you'll be scoring some great trophies to show off to people.
The game is due out in July, which is a little later than we expected (we thought May, then September, so this is decent news). However, Factor 5 promises a demo of the game to hit the PS-Store at some point. Their estimate? Either before or after the release of the full game. Yawn! It seems we'll get our demo in July, too, then. Judging from the timing of our demos to-date. Still, great preview! Check it out!