With the rumors going around that Prey 2 has been cancelled, Bethesda has finally given an update to put those rumors to rest. The project is not dead, but it's currently not meeting the standards of Bethesda. Thus, the 2012 release date won't be happening anymore.
The delay is due to the fact that game development has not progressed satisfactorily this past year, and the game does not currently meet our quality standards.
Prey 2 was unveiled last year and has been shown to numerous events including last year's E3. During E3, they revealed a playable demo of the game which to me looked amazing. After E3, the developer Human Head went silent for months showing no progress of Prey 2. 2012, the year of it's possible release and no new content was being revealed, then the rumors starting flying of its cancellation.
Production did not go as planned and while Bethesda did not cancel the project, it sounds like it was hanging by a thread.
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.
Prey 2 shows a lot of promise from what was shown last year. Hopefully everything goes well over at Human Head.
With Prey 2 out of 2012, Bethesda is not focusing on they're new title Dishonored.
[Source: Bethesda Blog]