IGN received a report this evening that The Last Guardian has been officially cancelled, that was apparently disclosed in Sony's internal meeting last week.
It's still a rumor, though. Not confirmed until, well, it's confirmed.
Source. Heh, now things are getting interesting. If this rumor doesn't pan out, IGN won't be looking too good when it comes to future reports like this, seeing how this might be getting one of the biggest in terms of traction.
Last night, I made a call to post a story about the cancellation of The Last Guardian. The source for this information was, in my opinion as IGN’s Editor in Chief, credible enough to justify running the story. While there is still a discrepancy with what our source has said, Scott Rohde’s Twitter post makes it clear that our original source was in error. The business of handling news sources involves some assumption of risk and last night my evaluation of that risk was clearly in error.
@mrfluke: If I remember correctly one of the earlier trailers stated this will be the final chapter. Not sure if it's with P4 in general or just the Arena series. I would have to look at it again.
In every piece of media they've put out saying something like that, they have always stated that P4AU will be "the final chapter in the P-1 Grand Prix saga", so not the P4A series or the P3/P4 storyline.