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On a more serious note, of course the game is not cancelled, this rumor is perfect bullshit.

1 year ago, Yoshida talked about the game being " re-engineering " ( so come to PS4 finally)
Good insider Demonite told us that the creative work is over, they are just building it on PS4 now.

Yoshida talked again about the game at VGX, saying he played it but didnt want to say which controller it was.

and, then, there is this more recently : http://www.dualshockers.com/2014/04/10/the-last-guardian-news-and-release-date-may-be-coming-soon-according-to-weekly-famitsu/


So i'd be surprised if the game is not annouced at e3



Predictions for end of 2014 HW sales:

 PS4: 17m   XB1: 10m    WiiU: 10m   Vita: 10m