Kotaku managed to catch up with Ueda and asked him what he's been doing since his departure from Sony. Ueda couldn't say much, but he assured us that he is indeed still working closely with the development team and that work on The Last Guardian is in progress. "It's been business as usual." Ueda said with a reassuring smile. "The only things that've really changed are the terms of my contract."
Sadly, when asked how far along The Last Guardian is, Ueda could only laugh and say, "I can't really comment on the details." So it looks like the wait is still on. With the departure of the executive producer, rumors in the past of cancellation, outsourcing to western companies, and a no-show at E3, people have been somewhat nervous about the fate of one of the most anticipated games. With all that, it was nice to hear from the man himself to help ease the wait.
The Last Guardian is scheduled for release when it's good and ready.