I have not heard any news on it. I personally would not be surprised if the device is never sold to the public. There have been numerous large screen e-readers that were never released, such as the Skiff.
I think that companies float these 'news' stories to gauge the public's interest in the device, and to build hype. Their hope is to create enough of a market to sell the product at a reasonable price. Sadly, there just does not seem to be much demand for e-readers with screens that are larger than 9.7 inches.
Hopefully Sony will come through with this one, but I would not bet on it.
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