The Last Guardian occupies the same space as Colossus and Ico but no direct continuation is being handled, and won't be. The sequels just couldn't go "above and beyond" originals.
"In terms of franchising, I don't think that the previous game or the game before that had that kind of potential. Meaning that even if we made a sequel of the other two games, it wouldn't have exceeded the first one - there's no way we could go above and beyond," Ueda-san told Sony's Jeff Rubenstein in an interview, posted on the .
See the video interview below for yourself with Team ICO's Fumito Ueda. Do dashed hopes of sequels to Ico and Shadow of the Colossus give you sad feelings, videogamer?