"The team is still there in SCE Japan Studio, [Fumito] Ueda-san is still there," Sony Worldwide Studios President Shuhei Yoshida told Game Informer recently when asked about the status of the long-delayed "The Last Guadian." But don't hold your breath on it: "[We] are still waiting for the time to reintroduce it."
The next game from Team ICO has been more or less MIA since it was first announced back at the 2009 E3. Since then, there's been little news about the first PS3 title from the acclaimed studio, with titles like "The Puppeteer" and "Knack" taking priority as Sony gears up for the end of the current console generation and the beginning of the next.
With absolutely no basis in anything said up to this point, allow me to suggest optimistically that "The Last Guardian" might, in fact, be a PS4 title. I can imagine a point where active development on the game could face some snags as Team ICO makes the leap between platforms. On the other hand, my baseless conjecture could be just that, and "The Last Guardian," like "Prey 2" is simply one of those dysfunctional projects that will have a great reputation as a game that could be rather than a game that will ever be.
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