Riachu said:
They're independent. ICO and SotC being PS2 exclusive was their choice. Correct me if I am wrong though
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They're an internal team formed by Sony.
Basically, this is how they started:
(from an interview with Shuhei Yoshidai, the current head of SCEWWS, on neogaf)
"They are working on a title. I started the ICO project. Ueda-san joined my team in Japan as a cinematic animator, but he created a short movie and presented it to me and said, "I want to make this game."
I said, "Yes, let's do it, but you have never made a game. We have to have experienced people do it," so it took a while, recruiting one person at a time. And because Fumito Ueda doesn't compromise, we had to move the development from PSone to PlayStation 2. Then I couldn't complete the game because I moved to the United States.
It took four years and the second game took four years too. So I started calling them the 'Olympic Team.' They haven't released a PS3 title yet - of course not - they'll take four years! But they have something really, really good on the way."
It's stuff like this and LBP that make me like Sony so damn much. :)