The last time I wrote about Prey 2 was in April of 2012 when Bethesda released an official statement saying the game wasn't cancelled.
Today, that changes as Pete Hines of Bethesda has told IGN that Prey 2 is now officially cancelled.
Prey 2 has has a long and difficult road with many obstacles to overcome, but in the end Bethesda didn't think the quality of the game being produced was up to their standards and the game's no longer in development. It's a little sad too as I heard great things from many people that saw it at E3 a few years ago.
Bethesda isn't closing the door on the Prey universe, but it might be a long time before they try and go back to it.