The Last Guardian creator, Fumito Ueda, has said that the game is still being developed despite his departure from Sony last year and “the unforeseen amount of time required” to create the game.
Dengeki PlayStation asked developers about their most memorable title on the platform and Ueda replied “The Last Guardian, by which I mean all the hardships and the unforeseen amount of time required than what was originally thought.”
He then went on to say that “Talks with Sony Computer Entertainment on The Last Guardian have been ironed out, and we’re making progress under completely new conditions. I’m also working on some other things that I’ll hopefully be able to show in time if progress is smooth.”
What these “new conditions” are is unclear, he could be talking about his working relationship with Sony or that the game has moved to PlayStation 4, it would be very surprising if the game is still coming out on PS3.