Fairytale Fights is a hack'n'slash adventure where players take the role of famous fairytale characters to stab, maim and otherwise beat the beejesus out of fairytale characters. I'm guessing that's Little Red Riding Hood in the trailer, but I suppose it could be some other bloodthirsty little girl lifted from Brothers Grimm lore. The game features over 100 weapons to carve up bunnies, gingerbread men and the like. It also sounds like you can use the weapons to carve up other players in online/offline player versus player mode — or maybe even in co-op story mode, if the game allows for friendly fire.
Either way, Fairytale Fights represents gingerbread men and the Unreal Engine 3 like I've never seen either before. It kind of makes me want a closer look, just to make sure that's blood the gingerbread men are bleeding and not jelly.