There are some worrying rumours concerning Arkane Austin rebooting Prey 2. It seems they're being forced to scrap Human Head's nearly complete work and rebuild the entire game scratch.
Over the past year Bethesda shopped Prey 2 around to Rebellion, and Obsidian. The former wasn't happy with the insulting money Bethesda was offering, and the former, known for their world building which seems a little at odds for the mechanics heavy Prey 2, failed. Now Bethesda's trying to shoehorn Prey 2's ambitious open-world (something Human Head's ID Tech 4 can already do) into Dishonored's Unreal Engine 3 derivative from scratch. Bethesda Softworks plan to throw away Human Head's work and start the game over.
Take off the developer who created the universe and more importantly the games and give it to teams who aren't up to the task.
"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."
What a joke! Nothing would disappoint me more than Bethesda kicking off the creators of Prey 2 off the project, and giving it to another studio over some petty contractual issue. By substantial investment, you mean start the game over from scratch instead of supporting the original development team, right? It certainly explains why you've been so cagey about Prey 2.