It turns out that all of the rumors saying that Prey 2 has been canceled have been greatly exaggerated. While it's true that it may not make it to shelves this year like originally planned, Bethesda revealed today that they are in fact still working diligently on the game to make it top quality before releasing it.

Bethesda posted on its blog:

Development of Prey 2 has not been canceled 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.

While it saddens Prey players, which, let's make clear, I am not, it makes me extremely happy that the company behind it would postpone it in order to release a better game. It's a tough decision to make since they need to make money. They are a company after all. But, it's better than them canceling it altogether.