There has been some discussion on the internet the last few days, because of the trademark drop from Sony regarding the Last Guardian. Sony has come out now and said that the game is not canceled. The game is still in development they say.
IGN confirmed that the game is still in development. It has not been canceled. This is not the first time this has happened. It also happened back in 2012. The game has been delayed several times and has no current release date.
The Last Guardian is not a stranger to rumors. It's been rumored to have been canceled several times. Sony still insist that the game is still in development.