The rumour mill has been a bit quiet on Ico 3 lately with next to no news apart from the fact that Fumito Ueda said in December 2005:
"I can't saying anything concrete about our next project, but it may use the same theme of "hold, and perform an action" from Shadow of the Colossus."
Well, that rumour has been surpassed by a rumour that Team ICO are developing two games. It's stated that this information has come from the Sony Playstation forums after a Motorstorm event in Germany (which did happen so there may be some credibility in this item). One of the games will follow in the footsteps of ICO and Shadow of the Colossus but the other game (much like ICO 3 really) is shrouded in mystery.
The plot thickens...