Bethesda this morning provided a little update on Prey 2, and while it's not cancelled, the news doesn't sound all that encouraging. Development apparently isn't going all that hot and the game's release has been pushed right out of 2012 at this point.
Read on for Bethesda's note they just sent out regarding the game.
Development of Prey 2 has not been cancelled but the game will not be released in 2012 as planned. 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.
But hey, you can still pre-order it for now!