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Samus Aran said:

Team Ico hasn't released games since the PS2 days (not counting remasters). Unless these guys helped other studios develop games during that period I fail to see how this could ever be profitable.

I assume that's exactly what happened (from my understand Sony Japan is something of a development blob in general, though Tachi would probably be the one to ask about that). I find it hard to believe that TLG has actually spent the last 10~ years in full on development. It having spent a significant amount of time in limbo seems more likely, which doesn't cost much/anything. That or it's spent that time with a relatively small team (or both).

As i said though, Shu has never shied away from hard truths in the past (e.g. mentioning that only 30% to 40% of their games are profitable, and that they rely on big hits to make it up), so i don't see why he'd start lying about such things now.