[Update] It appears The Last Guardian is still very much alive. According to GTTV's Geoff Keighley, SCEA boss Shawn Layden has confirmed that the game is "in full development in Japan."
[Original] With Sony's E3 media briefing just one day away, many are wondering whether or not The Last Guardian, Team ICO's chronically-delayed PlayStation exclusive, will be re-revealed at this year's expo. Rumors in the past have suggested that it was canceled, but Sony has time and time again reaffirmed that it is not dead, but still in development.
Now, an inside source has told IGN that the game "is finally canceled." Apparently the information was revealed during "Sony's internal meeting last week."
However, it didn't take long for Sony exec Scott Rohde to speak out against the rumor, saying that the information floating around is mere rumor and that "The Last Guardian has NOT been canceled."