SCE Worldwide Studios boss Shuhei Yoshida has said that it's "misleading" to describe The Last Guardian as "on hiatus", as it's still in active development.
Responding to concern over a comment from SCEA boss Jack Tretton, Yoshida said the Team Ico adventure is still in the works.
"That hiatus term - I’m not a native English-speaking person - but that’s misleading," Yoshida told Kotaku.
"The game is in active development. [Lead designer Fumito] Ueda-san shared updates a few months ago. Nothing has changed. My answer is, 'Yes, the game is in active development.' It’s not hiatus at all. But we are not ready to reintroduce it. When we are ready, we will do that. Please wait."
SCEA boss Jack Tretton has told GTTV that The Last Guardian is "on hiatus". However, just because it is on "hiatus" doesn't mean it's canned.
“I think the cool thing about our worldwide development studios is we have so many projects out there from so many great teams,” Tretton told GTTV (via TSA). “Projects never ultimately go away, so The Last Guardian has certainly not gone away, but it’s on hiatus right now.”
The Last Guardian announced back in 2009 for PS3 and many rumblings on the net seem to think it has moved over to PS4.
It sounds like it to us, but we're not soothsayers.