It's an action game...I guess you could say it has some RPGish elements, but its mostly just in this amazing setting that's right out of a storybook. Basically, you collect "folk," which are these wonderfully strange creatures that have unique abilities. One might have a projectile attack, another might have a fire-based attack. You can't do combat yourself, so you need the folk to do it for you. You assign different folk to different face buttons, then hit the button for the attack you want to do. You can capture the souls of new folks to add to your arsenal. You also get different costumes that give you different abilities and buffs. You play as the two characters you saw in the video, each one with their own storyline, though the stories intersect in places.
It's kind of hard to find now, but if you can scoop it up, definitely give it a shot, if only to see how beautiful and otherworldly it is.