According to Gamasutra, Bethesda has officially (and finally) put the long-delayed sequel "Prey 2" out of its misery.
The game would have been a sequel to the original "Prey" that came out in 2006, a particularly brutal sci-fi/horror first-person shooter. The original game had you playing Cherokee "Tommy" Domasi Tawodi, as he is abducted by an alien race then brought aboard their spaceship. Tommy then has to fight his way through the ship to put an end to the alien menace.
The sequel would have completely shifted gears, putting you in the role of a U.S. Marshal, Killian Samuels. Killian was also an abductee, who has no memory of the incident, and is now a bounty hunter on an alien planet. He meets Tommy, compelling him to go on a quest to recover his "lost" memories.
"Prey 2" was officially announced in March 14, 2011, although plans for a sequel were confirmed very early after "Prey's" release. The game was being developed on the Id Tech 4 engine, and apparently retained its original vision when publishing rights were transferred from Radar to Bethesda.
However, it was under Bethesda that rumors of cancellation began, with these rumors initially cropping up in March 2012 and May 2013. In turn, Bethesda progressively delayed the game's release, and ultimately removed the game from its site. There were also rumors that Human Head Studios, who worked on the original title, were taken off the project, and Arkane Studios ("Dishonored') and Obsidian Entertainment ("Fallout: New Vegas") each took a whack at salvaging the game.
Bethesda Vice President Pete Hines revealed that the game was cancelled at PAX Australia.
"It was game we believed in, but we never felt that it got to where it needed to be," said Hines. "We never saw a path to success if we finished it. It wasn't up to our quality standard, and we decided to cancel it. It's no longer in development. That wasn't an easy decision, but it's one that won't surprise many folks given that we hadn't been talking about it. Human Head Studios is no longer working on it. It's a franchise we still believe we can do something with... we just need to see what that something is."