As spotted by a NeoGAF  poster, Dutch site PS Focus  claims to have intel that the plug has been pulled on developer Human Head's title, and that an official announcement will come next week. 
 
The fact that a Prey 2 presentation scheduled for GDC in San Francisco earlier this month was cancelled a few weeks before the show got underway adds some weight to the report. 
 
"Yes, Zenimax forced us to pull all Prey 2 related talks from GDC. I'm pretty devastated by the news. This was to be my first conf talk," Tweeted  Human Head lead programmer Brian Karis at the time.

Thanks all for the kind words. Needless to say this not a good day for me. 
 
I'm sorry but I can't answer some of the questions being asked about this

Haven't they put a lot of money into this already? If it actually is cancelled, it's an oddity. Even if it's going to sell at a loss, businesses usually don't cancel something they've put a whole lot of money into.

I guess the "Prey 2 will have nothing you liked about the original, but everything else and your mother's skirt" approach didn't pan out. Or this is just a dumb-ass rumor by website no one knows.

I hope this is all just a rumor. Prey 2 was one of my most anticipated games! Man, such a bummer if it's true.

Man, what a loss that would be. Prey 2 was looking GREAT.

After hearing them talk about it on the bombcast i was looking forward to this game, hope its not true.

Bethesda are a bunch of complete fucking clowns. They shaft Obsidian over 1 Metacritic point and then cancel the best looking game they have. Fucking.

This whole fucking industry is doomed.

No offense to those games, but it Bethesda let Brink and Hunted: Demon's Forge to be released, theres no way Prey 2 will be cancelled. Well I'd like to think so anyways. =(

Bummer was looking forward to it.

They can't be fucking serious....fuck

This sucks! Game looked amazing

This is bullshit! Prey 2 is one of my most anticipated games as well, that E3 demo was pretty awesome. I hope and prey this is just a rumor.

:/ please dont let that be

it looked really good

This is extremely disappointing.

well that's dumb.

Really hope this isn't true...

I hope that ain't true. If so I guess I'll just put my shooter money into Halo 4.

I wonder where this series would be right now if the original game came out in the 90s/early aughts like it was supposed to. I mean the old footage looked fantastic.

I pretty sure Patrick was Mega Pumped for this game so I'd like to think he's already on the case with this one...........hope it ain't true tho.

Kinda sounds legit.

@SomeDeliCook said:

No offense to those games, but it Bethesda let Brink and Hunted: Demon's Forge to be released, theres no way Prey 2 will be cancelled. Well I'd like to think so anyways. =(

Personally I think it's because of Demon Forge and Brink. The higher up don't want their brand equity to suffer from less than stellar release (though I admit the Prey 2 demo I saw was kinda neat)

I hope it's not true, game looked amazing.

Really loosing my respect for the industry if it gets canned.

I'm tired of good concepts going down the drain.

@niamahai said:

@SomeDeliCook said:

No offense to those games, but it Bethesda let Brink and Hunted: Demon's Forge to be released, theres no way Prey 2 will be cancelled. Well I'd like to think so anyways. =(

Personally I think it's because of Demon Forge and Brink. The higher up don't want their brand equity to suffer from less than stellar release (though I admit the Prey 2 demo I saw was kinda neat)

Rage also didn't sell all that well too, right? And that was a game that had a good amount of hype behind it.

Thats a bummer if true. That game looked pretty fucking cool at E3.

Man I hope this turns out to be false, prey 2 looked genuinely unique and amazing

Quickly everyone, to kick starter!

What?! That game looked incredible!

Maybe they'll rebrand it or something. True Crimes/Sleeping Dogs style. Prey isn't a super recognizable name and this game is so different from the first one, it could work.

If this is true that's more than a major bummer. Everything about that game was looking amazing, and was easily one of my most anticipated of the year.

Must have been an overall mess if this is fact and not just a silly PR stunt.

I'm just a skeptical as many who take reports from obscure sources with a grain of salt, but if this game does get cancelled in a world where a crappy game such as Raccoon City make it to stores , I've lost faith in this industry

@SomeDeliCook said:

@niamahai said:

@SomeDeliCook said:

No offense to those games, but it Bethesda let Brink and Hunted: Demon's Forge to be released, theres no way Prey 2 will be cancelled. Well I'd like to think so anyways. =(

Personally I think it's because of Demon Forge and Brink. The higher up don't want their brand equity to suffer from less than stellar release (though I admit the Prey 2 demo I saw was kinda neat)

Rage also didn't sell all that well too, right? And that was a game that had a good amount of hype behind it.

To me Rage was a tech demo. All I'm hoping for is that we get a Quake 5 after Doom 4.

If this is for real, it really sucks. This game looked like it could be awesome.

Damn, that would suck. I was looking forward to this.

Man, I thought it looked good. This had better not turn out to be true.

@Shookems said:

Quickly everyone, to kick starter!

You joke, but the game's mostly done. I think we could fund that shit.

Of course it's more likely that someone else will come along and pick it up to publish, depending on how far along it is. And they better, because that game looked hot.

But that game looked awesome! Why must they cancel it.

This is really bad news, Prey 2 looked like something truly special. I'm actually a little heart broken, no joke.

@believer258: Except the Pirates of the Carribean RPG and that Mega Man Universe game.

Dood, seriously?!?!?!

I was so fucking HYPED about this game!

At first I thought, "There was a Prey 2 in development?" But then I thought, "Wait! Fuck! There was and I really wanted to play it!"

@WilltheMagicAsian said:

@SomeDeliCook said:

@niamahai said:

@SomeDeliCook said:

No offense to those games, but it Bethesda let Brink and Hunted: Demon's Forge to be released, theres no way Prey 2 will be cancelled. Well I'd like to think so anyways. =(

Personally I think it's because of Demon Forge and Brink. The higher up don't want their brand equity to suffer from less than stellar release (though I admit the Prey 2 demo I saw was kinda neat)

Rage also didn't sell all that well too, right? And that was a game that had a good amount of hype behind it.

To me Rage was a tech demo. All I'm hoping for is that we get a Quake 5 after Doom 4.

id Software honestly needs the creativity Romero brought them. And Romero himself also needs the leash id had on him when they provided the engine.

If this is true, this is the biggest bummer of the year! What the fuck man! Hopefully if it's a real story, it'll just turn into a April fools joke. This is the game I'm most excited about for this year I think. I mean, yeah, Bioshock Infinite, and whatever else, but this is the one.

@Olivaw said:

@Shookems said:

Quickly everyone, to kick starter!

You joke, but the game's mostly done. I think we could fund that shit.

Of course it's more likely that someone else will come along and pick it up to publish, depending on how far along it is. And they better, because that game looked hot.

Honestly I'm not even joking really. I want this game to come out as much as anyone, I'd be really bummed if it was completely canned. I'm also probably among the few that actually played through Prey.

Sounds a bit legit, really don't want it to be. I was pumped for Prey 2.

If there's no vagina doors or assholes why waste your time?

Wow. How terribly disappointing. 
 
I was really looking forward to it.

oh i hope this isn't true ><

So only Dishonored is left in the "interesting games of 2012" list, then.

Apparently the project will be renamed to Pray and released as part of the big 2012 bible games reboot alongside Noah's Ark Evolution and The Jesus: Origins.

@Harkat said:

So only Dishonored is left in the "interesting games of 2012" list, then.

E3 hasn't happened yet