Is The Last Guardian on Hiatus?
It seems the rumors going around about The Last Guardian being cancelled are not true. Sony's Shuhei Yoshida pointed the finger at Sony America's Jack Tretton for putting the idea of the game being on hiatus out in the first place.
Last month Yoshida talked about how the SCE Japan Studio team, headed by Ueda-san, is hard at work on the game. There is not much information about the game but there are plenty of people working on it.
The Last Guardian was announced as a Team ICO PS3 project at E3 2009, but recent news indicates that the game might now come out for the PS4. Since the PS4 is coming out soon, this could be likely, but don't expect anything final right now.
This game seems interesting so it is a shame it is taking so long to come out. And even though it has been said it is not on hiatus, some people are still not sure about whether the game is cancel or not. So you will just have to keep your eyes peeled!