The last Guardian has not been cancelled and is in fact in full development, according to Sony.
Spike TV journalist Geoff Keighley tweeted he had been told by SCEA CEO Shawn Layden that the long-awaited title was “unequivocally” underway in Japan.
The news follows earlier reports by IGN that The Last Guardian had been cancelled following years in development.
IGN has since published an official apology on the story however, and has retracted the original report.
The Last Guardian was first revealed at E3 2009 by developer Team ICO, the team behind PS2 titles Ico and Shadow of the Colossus. Little has been heard of the game since.
On the off chance that new details are finally revealed on the long-awaited title, you can watch Sony's E3 press conference live right here.