So quite a bit of news this past week.
http://kotaku.com/we-hear-the-people...g-on-510646344
It seems Human Head's version of Prey 2 has been scrapped for arbitrary reasons, and the game is going to be rebooted from scratch by Arkane Austin (without the direction of the Dishonored leads who're or have recently moved to Arkane Lyon). Sounds like their not happy about throwing away a fellow developers work. Also, Prey 2 was in development at Obsidian last year - that don't have the source code, so it would've been a herculean effort to finish it.
A former Human Head employee, Jason L. Blair (currently of Volition) slammed the lies surrounding the project:
http://www.aliennoire.com/home/news/former-employee/
"This Prey 2/Arkane rumor is giving new life to a lot of old lies. I’ve been quiet about this whole business but can’t stay so anymore. I’ve worked at/with @humanheadgames for years, including different stages of Prey 2 development. I was narrative designer/writer on Prey 2 for the last six months of its development at Human Head. It was a lot more than a demo. Prey 2 was a full game. And a crazy fun one. The team was small but you wouldn’t have known it. What happened to Prey 2, from where I sat, was political. And petty. And potentially litigable. Human Head had a great game. I was heartbroken when Prey 2 went into limbo. Human Head deserved to have that game released. Frankly, they needed it.
As for Arkane, I’ve enjoyed what I played of Dishonored. They have the chops. If the rumor is true, they’ll likely do well with Prey. But I mourn that Prey 2 won’t belong to Human Head. I mourn that my friends won’t get recognition for what they accomplished. Instead, they get the same old “Prey 2 was never a game” and “It was just a demo” thrown around. Shameful. And completely untrue."
I really hate Bethesda.