At least it hasn't been canceled
Sony's perpetually in progress The Last Guardian is still in "earnest" development according to Team ICO head Fumito Ueda.
In an interview with Famitsu (translated by Polygon) Ueda didn't say much regarding the highly anticipated PlayStation title. What he did say though, only further perpetuates concern for the title.
"However, SCE Japan Studio, who's working on The Last Guardian, also has titles like Puppeteer and Knack, and those are only the ones currently announced. Those are taking priority right now."
Well it's good to know Sony has priorities. Both the Puppeteer and Knack look fantastic and I'm eagerly awaiting their releases. Hopefully with the Tokyo Game Show right around the corner we might learn a little more info about The Last Guardian.