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Bethesda has announced that Prey 2 has not been cancelled, but instead delayed past 2012. Bethesda has stated:
“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”.
“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.”
Here is Prey 2’s E3 trailer:
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