According to a recent Kotaku rumour, Prey 2 has been passed around, but is now being forced-fed to Dishonored developers Arkane Austin. Once gracing the cover of Game Informer in its exclusive reveal, Prey 2 found a rocky road at original development team and Prey developer, Human Head Studios. Although it was believed Human Head had stopped work on the game in 2011, Bethesda would never confirm it was canceled.
The source mentioned that it passed through Obsidian and was offered to Rebellion before Bethesda convinced Arkane Studios to take the reigns. If all this turns out to be true, Prey 2 could be in development for a decade like the original Prey.