According to a report in the LATimes, it's absolutely still happening.

The story emerged out of an interview with the movie's screenwriter Justin Marks, the same dude that did the terrible Kristin Kreuk Street Fighter movie. Sigh.

“I think many of the games haven’t worked as movies because it’s hard to find the right game. There are very few that lend themselves to movies,” he said.

“If we started thinking that anything that worked in one medium shouldn’t be adapted for another we wouldn’t have a lot of the great movies we’ve had, because so many of them came from novels.”

Yes, but Shadow Of The Colossus wouldn't make a good movie now would it? We're not sure how you get across the subtlety of that narrative.

We just want Team Ico's PS2 games re-released on PS3 in high-definition please. E3. Yes.