The Last Guardian has not been cancelled, this much we know. If that should ever be the case, Sony promises it will tell you.
Speaking with Polygon during E3 2014 worldwide studios president Shuhei Yoshida once again promised the Team ICO title is not vaporware and it was in development.
"It exists. The team is working hard on it," said. "I was heartbroken when some article came out on some major site saying it was canceled. I will say this. When we cancel a title and it is something we have announced already, we'll say so."
Earlier this week, he told Eurogamer Sony didn't want to "release piecemeal information" on the title, so until there is more to show, fans will have to remain patient.
The Last Guardian was announced at E3 in 2009.