hmmmmm... looks familiar... HMMMMMM... H M M M
This is essentially a stickerbook-style "game" where you reposition characters and objects as you see fit. You can remove stuff from characters like shoes (although it appears they lose their feet when you do this which is hmm) and hats, and equip pretty much anything you find on the ground to their hands. For instance, I gave what looks like a toddler a knife... this is a game for all ages. The environment's art style is 100% unique, never-before-seen, absolutely original in every sense of the word so long as you don't forget the air quotes. All in all, its a glorified stickerbook and nothing more, no actual gameplay and the people do nothing but stand there and hold things you give them. You get your money's worth just by looking at the screenshots.
And yes, there's a totally original handheld console on the floor in the freely-accessible house, though the totally original game being played on it isn't the one you're thinking of.