Didn't they talk about this a few months ago? I believe their reasoning for not continuing was because they didn't want to make a Jak and Daxter game that didn't feel like Jak and Daxter so they decided to go with The Last of Us instead.
I've heard about this stories before, thinking how horrible idea they have to make it more realistic. but after seeing that concept art, it actually is not as bad as I imagined, sure that is totally not daxter and I can't imagine Daxter voice coming out of that character from concept art, but as a new reboot or new IP, I think it's a pretty cool looking design.
That concept art combined with the interview about a new J&D game being semi-realistic and grim makes me glad they've moved on. Bit of a shame, as Jak's artstyle is perfect for a current/next-gen game imo
This is old news. This is the project I was talking about in that thread a few weeks ago, the thou teamwork as trying to make it into a gritty realistic reboot and they gave up when they realized it couldn't work,