The Bethesda Blog has an update on Prey 2, Human Head's upcoming first-person shooter sequel that was rumored last month as having been cancelled. Word is the game is not cancelled, just delayed beyond the end of this year:

Development of Prey 2 has not been cancelled but the game will not be released in 2012 as planned. 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 AAA game that fans rightfully expect, and are unwilling to compromise our quality standards to meet a release schedule.