Bethesda have confirmed Prey 2 has not been cancelled, and is indeed still in development.
A statement, issued today, has also confirmed the game will not meet the 2012 deadline. Citing that the game isn’t currently meeting standards, the announcement puts those holding their breath at ease:
“The delay is due to the fact that game development has not progressed satisfactorily this past year, and the game does not currently meet our quality standards”
Bethesda also said that while they don’t like disappointing fans, they are “unwilling to compromise” the quality they deliver:
“Prey 2 has shown great promise and we regret disappointing our fans. We have made a substantial investment in game development to deliver the experience fans want. We are determined only to release the AAA game that fans rightfully expect, and are unwilling to compromise our quality standards to meet a release schedule”.
Prey 2 is currently in development with the Human Head team. We’re pumped for it.