Fans expecting a 2012 release for Prey 2 will be pretty disappointed with what Bethesda has to say. No, the game is not being cancelled, so you won't be that disappointed dear fans. Bethesda has announced that they are not going to release Prey 2 in 2012 because the game isn't up to their standards yet.
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.
I guess Bethesda is learning from the whole EA debacle and making sure that they have a quality game that fans will enjoy and not protest. Although Bethesda has not failed me before, except with Oblivion but it wasn't that bad. Still, it's nice to know that Bethesda is not cutting corners with this game.
Bethesda's transparency about this situation is also something that I find satisfying. They're not letting people sit in the dark, waiting for some sort of news. More developers and publishers should do this. Not give out details about the game, but just an update on how things are going and if development is on track.
Source: Beth Blog