Since its reveal back in 2009, The Last Guardian has missed out on every single major gaming event, ranging from E3 to TGS. There were also rumors circulating that the project was canned. It wouldn't be surprising, with the expiration of the trademark last week and Fumito Ueda leaving Sony a few months back. With a very strong showing at gamescom 2012, it was though that Sony would finally show off the game. Unfortunately that wasn't the case.
However Sony assures that the game is still alive and in development. In a recent interview with Eurogamer, Sony Worldwide Studio's chief Shuhei Yoshida stated that:
"The team is still working on it very hard.There are certain technical issues they've been working on. That's the period of time when the game, looking from the outside, doesn't seem to be making much progress. But internally there is a lot of work going into creating the title.Yoshida also mentions in the interview that while did they had a playable build of the game, the team ran into some technical problems and had to go back in and re-do some of the programing. It was speculated that The Last Guardian is taking so long because the team has switched the game over for development for the next Playstation console. To this Yoshida replied that the game is still being developed as a PS3 game"