Good news for anyone who was keen on Human Head's Prey 2, as rumours of a cancellation have been quashed today thanks to a note from Bethesda.

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.

The likely scenario moving forward is that we'll start seeing a roll out of new information in the early parts of 2013, though in a report over at Eurogamer, there's also a strong chance development will be picked up by someone other than Human Head as much of the game's delay has been due to a dispute between the developer and Bethesda parent company, Zenimax.

It's a shame it won't be this year, but we were so damn impressed with the showings AusGamers was privy to all of last year, we're just happy the game is still in development. Here's hoping everything is settled between the two companies and development continues on Human Head's part at their own hands.