Bethesda has moved to deny reports that Prey 2 has been cancelled, but admitted that Human Head Studios' sequel "does not currently meet our quality standards" and will not be released this year.
Last month Dutch gaming site PS Focus suggested Bethesda parent ZeniMax had cancelled the game after Human Head pulled out of three GDC sessions at the 11th hour. Bethesda's lack of comment on the matter only fuelled the fire, but the publisher has broken silence to insist that work on the game progresses.
"Prey 2 has not been cancelled, but the game will not be released in 2012 as planned," the statement reads. "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 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 triple-A game that fans rightfully expect, and are unwilling to compromise our quality standards to meet a release schedule."
While the delay is disappointing, it's obviously a relief it hasn't been cancelled outright, and in a way it's quite fitting: its predecessor was first announced in 1995, and only hit shelves in 2006. Prey 2 was announced for Xbox 360 and PC in 2008, and is also in development for PS3.