Speaking to Kotaku, Sony?s Shuhei Yoshida has stated that third game from the ICO/Shadow of the Colossus team is still in development for the PS3. The developers have also suggested that the game was announced too early.
An unnamed developer told Kotaku "I give you my word that it exists. We are working on it."
?There are lots of pieces of the puzzle. It?s a matter of getting them to fit together.?
Kotaku also says that Fumito Ueda, when he was still on the development team, agreed that the "very ambitious project "had been announced far too early'