The road from announcement to (hopefully) launch has been a rough one for Prey 2, to say the least. Now it gets a bit more storied, as the rumor mill is a-churning that Dishonored developer Arkane Studios has been put to work on the game, and might be forced by publisher Bethesda to scrap all the work Human Head has done since.
This rumor comes by way of Kotaku, who said it had heard whispers, but held off on reporting to story due to a lack of confirmation. Once a similar story popped up on Prey 2 fan site Alien Noire, Kotaku reportedly checked back with and successfully confirmed that their tipster is in a position of power to have this information.
With relatively little contact between developer Human Head and publisher Bethesda, Bethesda reportedly stepped in to kill to project. The sequel is supposedly in the hands of Arkane Studio's Austin branch, under instructions to forget that it's a Prey game, and treat it like a new System Shock. This new Prey 2 iteration is supposedly slated for release as late as 2016. If this is indeed true, then it's perhaps way too optimistic to expect a proper announcement at E3, if the alleged target date is so far out.