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Bah. The whole "Team ICO is working on two games!" rumor started way back in May.

However, I'm sure Sony has loads of games in the works that we don't know about.  Team ICO's project(s) have yet to be announced, along Zipper Interactive's, the Ape Escaped dev's, Incognito's next game, Naughty Dog's next game, etc.  Even God of War III hasn't been "officially" announced.  Sony has a lot on the way, but considering how large SCE is, it is not unexpected. 

Sony's internal franchises have always been numerous, and it seems strange to think that those would disappear just because the ps3 isn't selling so hot.  These aren't 3rd party devs, they're owned by Sony.