This is "Pixel Press Floors".
This app (available free on the Apple App Store) takes video game-making to a whole new level.
All you need is an iPad, a paper, and a pencil. Using the app's Sketch Guide, you can create your own video game by drawing on the sheet then uploading it to the app.
Using the app, you can edit the way your game appears, acts, and sounds. Through in-app purchases, you can also create villains and power-ups.
Pixel Press began as a Kickstarter project. After the project met its goal, the app was released in mid-Spring of this year.
As of now, "paper-to-game" uploading has yet to be added to the iPad app. However, in-app creating is another option, and has no technical problems.