The Last Guardian has not been cancelled. Sony has reiterated on multiple occasions this week that the title is still in development, and it gains absolutely nothing from stringing fans along and lying about that fact. In fact, chatting with Polygon, affable executive Shuhei Yoshida has stressed that the company promises to let people know should the anticipated Team ICO release ever get binned in the future.
“It exists; the team is working hard on it,” the Worldwide Studios president stressed in an interview with Polygon. “I was heartbroken when some article came out on some major site saying that it was cancelled. I will say this: when we cancel a title and it is something that we have announced already, we'll say so. It's a highly anticipated title, we have to do so.”
IGN reported prior to E3 2014 that Fumito Ueda’s ambitious escapade had been canned, but it later retracted the story after a slew of Sony employees refuted the claims. However, that doesn’t change the fact that it’s been several years since we last saw the game, which was originally announced over five years ago. The platform holder’s said that it will make more announcements at GamesCom and the Tokyo Game Show later this year, so now we wait.