The term "re-engineering" is worrisome, but at least it's not as bad as "canceled."
According to a recent GamesIndustry.biz interview with Sony Worldwide Studios boss Shuhei Yoshida, The Last Guardian is apparently undergoing a reconstructing process of some kind.
He was asked to clarify the "hiatus" statement made by SCEA president Jack Tretton and Yoshida said that was somewhat misleading. Here's what he had to say:
"Hiatus, I never… It was Jack Tretton! He used that term, and I said no, hiatus is misleading. It was a hiatus in terms of releasing new information. The game has never stopped–the team has always been here. They're going through the reengineering of the game, so the team size is smaller, because it's more engineering focused right now."
As for a release date, Yoshida unfortunately said that he "cannot talk about it." He added that they're still waiting for the right time to reintroduce the game "in an appropriate way." Maybe we shouldn't be too concerned, though, because he said the game remains in development and that it's well-staffed. Fumito Ueda is still working on it (even though he's no longer a Sony employee) and maybe, just maybe, it'll be revealed as a PS4 exclusive soon. That would only make sense.
No, Yoshida didn't add that last bit. I did. Because I'm very hopeful.
Related Game(s): The Last Guardian