At this point, you shouldn't be surprised.
Over the years, we've heard vague updates pertaining to a Prey sequel. It was delayed several times, it switched development teams, and then it was "in limbo."
Not good signs for any project and now, publisher Bethesda has confirmed that Prey 2 has been canceled. Pete Hines told CNET that it was a lack of quality and direction that decided them:
"It was a 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. 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."
The original title released to decent critical acclaim in 2008, and the follow-up effort was first announced in 2011. For a while, it was in development at Human Head Studios but after that, we didn't hear much. Well, it's not like FPS fans have a shortage of games on the horizon, right?
Related Game(s): Prey 2