There's a good reason Prey 2 has been delayed to 2013, as announced today. It's because its development studio hasn't worked on the game since November, according to an anonymous source speaking to Shacknews.
The reason for that? Human Head, the developer "was not happy with the terms its contract with [publisher] ZeniMax," reports Shacknews, "and deliberately stopped work on the game in November so it could try to negotiate a more favorable deal."
This is according to a Shacknews source who asked not to be identified. The source said some of the development team were laid off, and hoped to be rehired if the deal could be restructured. But ZeniMax stopped talking to Human Head in January, which is probably why rumors surfaced in March that the whole thing would be canceled.
Confronted by Shacknews, ZeniMax gave no additional comment beyond this morning's statement that the game was delayed.