Edit - conflicting reports coming out of sony now. Sony’s president of Worldwide Studios, Shuhei Yoshida, is quoted as saying "It’s alive and kicking in terms of development... if you visit Japan Studio there are lots of people working on it" by CVG.
Confirming what many expected, Jack Tretton of Sony has confirmed that The Last Guardian is officially "on hiatus."
The game was first announced at E3 2009 and has since been in a state of uncertainty. The game was last seen at the 2010 Tokyo Game Show and has been missing from all major trade shows since then.
Earlier this year it was suggested the game may have been moved to the PS4, but it now seems that the project is just on hold instead.