Update: Sony has swiftly responded to the Shacknews inquiry, noting that The Last Guardian has not been cancelled. Sony's Scott Rohde also responded publicly to the rumor on Twitter, noting that "The Last Guardian has NOT been cancelled."
Original story: Fans waited on bated breath through delay after delay after delay, but the last vestiges of hope now appear to be extinguished. Late Saturday night, word has come from Sony that the much-anticipated follow-up to Ico and Shadow of the Colossus, The Last Guardian, has officially been cancelled.
IGN is the official bearer of bad news, as they report that Team Ico's game was officially terminated during one of Sony's internal meetings last week.
The Last Guardian's development cycle has been incredibly tumultuous. Back in October 2013, Sony Worldwide Studios head Shuhei Yoshida noted that The Last Guardian was undergoing re-engineering in the wake of numerous hiatus rumors. In December, game director Fumito Ueda re-ignited hopes for the game's eventual release by noting that creative work was "mostly finished."
Of course, this isn't the first time that cancellation rumors have surfaced with this game, so maybe not all hope is lost. Shacknews has reached out to Sony to confirm the news.