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According to The Last Guardian creator Fumito Ueda says The Last Guardian is currently in development under "new conditions."

 

Team Ico's spiritual successor to Ico and Shadow of the Colossus has had a very troubled development cycle, with Ueda temporarily leaving the team and many delays. You can read the full timeline of its woeshere. For its part, Sony has been steadfast in saying that the game was not canceled and still in development. However, we now have confirmation from Ueda, who recently spoke out in an interview with Dengeki PlayStation (translated by Kotaku).

In it, he suggests that problems he had with Sony have been ironed out, saying, "Talks with Sony Computer Entertainment on The Last Guardian have been ironed out, and we're making progress under completely new conditions."

It's not clear whether "new conditions" means new business or creative terms with Sony or ? more likely ? that the game is now being made for PlayStation 4, as many assume.

[source: Kotaku]

http://www.gameinformer.com/b/news/archive/2014/12/11/the-last-guardian-creator-says-game-is-making-progress.aspx

Our Take
There's certainly been some drama behind the scenes of The Last Guardian, but the important thing is that this extremely promising game is still in production. Given Ueda's track record, we have every reason to be excited. 

Whatever he craps out after all these years of constipation will be gold, but this is one example of how not to unveil a game when it's nowhere near ready.

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