The game is an early PS2 game by Treasure realised in 2001, known as freakout in Europe. here is the screenshot of the gameplay
http://www.hardcoregaming101.net/wp-content/uploads/2017/05/stretchpanic-2-e1513697611842.jpg
here is a review of the game
https://www.youtube.com/watch?v=1LVUFOAH8vg&t=2s