Last night, I expressed that I didn't believe Sony had cancelled production on The Last Guardian despite the company abandoning a North American trademark. I truly believe the game is coming out by hell or highwater.
Sony have now confirmed this by clarifying to GameSpot that the game is indeed still in production. A Sony representative said they:
can confirm that the Last Guardian is still in development
I believe that too. There's no reason for Sony to protract fan hopes if the project is indeed already dead. I'd wager we'll see the game updated for the PlayStation 4 at this year's E3. I've said that for the last few years mind, so I could be totally wrong. The timing feels more right than ever though as Team ICO will have had time to port the game to a new-gen infrastructure.