Sony's Japan Team was working on The Last Guardian. It's gone through development hell and we havent seen it in a very long time. Sony has been very tight lipped about the game. Is it still being developed? How does it look these days? When will it be released? etc... nobody wants to say anything. 

Famed developer Fumito Ueda left Sony JapanTeam, although its said he still has some sort of advisory role in finishing the game.

Now Sony's Japan Team is rumored to be collaborating on Project Beast, which is rumored to have Hidetaka Miyazaki as the producer. 

Is it possible that The Last Guardian development was shifted to Project Beast? FromSoft speeds up development by getting help from JapanTeam.... while JapanTeam gets a leader for a game that was seemingly lost and had no direction.

When you look at Project Beast, the beast looks eerily similar to the rat-bird-thing from The Last Guardian. He's just smaller and more vicious looking now. The beast seems to be the sidekick/friend that the animal in TLG was suppose to be.

No similarities... two different games.

BTW Sony Japan Studio works in a lot of games in parallel.

What are you talking about? That's just a mangy normal sized large breed dog, like an Irish Wolfhound, in fact it looks a lot like an Irish Wolfhound. It's only the "camera" angle and the dog being in the foreground and people being in the background that makes the dog look freakishly big.the people from the dog. If you look at the shoulder of the person on the right, who is closest to the dog, but still behind it. The person's head (which is out of shot) would be slightly above the dog's. The beast in TLG is at least twice the height, possibly taller, than a full grown man.

There's nothing related about these things content-wise. But you may be right that development resources have been stripped from TLG and put into Project Beast.

I don't think they're related.

I think people were just joking about them being the same things. 

i find it odd that they would work on two games in parallel and both have dog-bird-thing companions.

Yeah as much as we talk about TLG being in dev hell we forget about all these other games they made