In a letter to the press this morning, developer Bethesda basically outlined what's been going on with the project. It looks as though Prey 2 wasn't shaping up the way it was envisioned and the holdup (and subsequent delay) is to give development a little while longer. So basically, don't expect to see the game this year.
Below is the letter from BethSoft:
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.So there you have it- no alien bounty huntin' till 2013 at the earliest. Hopefully we'll hear more at E3 since P2 was on more than a few 'games to watch' lists and was shaping up pretty nicely.