UPDATE: The Last Guardian not cancelled, currently in "full development"
Rumours of The Last Guardian's demise were greatly exaggerated, so fingers crossed we see the Team Ico effort at E3 this week.
Over the weekend, rumours arose that the third game from Team Ico had been cancelled; the story has since been repeatedly squashed. You cna follow the sage via the original story and updates below.
ORIGINAL STORY
IGN has claimed that The Last Guardian has been finally canned. The site ran the headline, "E3 2014: THE LAST GUARDIAN CANCELLED," this morning: you can't get much clearer than that.
Sony, however, has instantly denied the Team ICO game has been axed.
From what VG247 has heard in the last week, IGN is off the mark.
It was claimed in April that the game would be dated soon.
Sony's E3 2014 press conference takes place tomorrow in LA. You'd do well to watch it. Get all the info you need about streaming and coverage details in our E3 viewer guide.
UPDATE
Speaking in a pre-E3 interview with Spike TV's Geoff Keighley, Sony Computer Entertainment America's Shawn Layden said the third Team Ico game remains in full production.
Layden replaced Jack Tretton as president and CEO of SCEA in March, so he's presumably in a position to know.
Thanks, Gematsu.
UPDATE 2:
IGN has published a full retraction and apology for the rumour.