Bethesda Softworks have released a statement confirming that Prey 2, contrary to recent rumors, has not been cancelled after all. However, a release in 2012 is out of the question, as the game has “not progressed satisfactorily this past year” and is not yet up to Bethesda’s “quality standards”, despite apparently showing great promise.

Bethesda emphasized that they are “unwilling to compromise [their] quality standards to meet a release schedule”, so a proper release date is open to speculation. They were also unwilling to make any comments beyond what was said in their statement.

Source: Joystiq

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