Here's a bit of news that should surprise nobody but is no less disappointing to read. Bethesda has officially confirmed that Prey 2 has been cancelled.
"It was game we believed in, but we never felt that it got to where it needed to be - we never saw a path to success if we finished it," Hines said.

"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's a franchise we still believe we can do something with -- we just need to see what that something is."

Prey is still a fantastic game. It's a shame that there may never be another game released in that franchise.

(via Cnet)