According to sources for both Kotaku and Prey fansite AlienNoire Arkane Austin, which previously made last year's Dishonored, is now heading up development of Prey 2 which was formerly being produced by Human Head Studios.
Bethesda has refused to comment on the matter however according to rumours Obsidian (Fallout: New Vegas) were involved at one point in the project while Rebellion (Rogue Warrior) turned down the opportunity to make the game, both have previously worked with Bethesda. Apparently Bethesda have been looking for a studio to give the project to since 2011 and Arkane have become the unwilling developers of the title.
It seems that for a over a year Human Head Studios were left in the dark by Bethesda only to be told recently that the game was being cancelled, or at least their involvement with the project was being terminated. Human Head has worked on a variety of projects during this time, including lending a hand to Irrational in the development of BioShock Infinite.
Apparently Arkane were eventually forced to take up the game and will start from scratch, undoing all of the work which had been done at Human Head. Bethesda are said to be targeting a 2016 release date.
While Arkane Austin may be working on Prey 2 it's likely that Arkane Lyons will continue produce more in the Dishonored series which Bethesda has said it wants to transform into a franchise.
Prey 2 was originally announced in 2011 and has had a troubled development ever since though Bethesda have never offically confirmed the cancellation of the title.
