Word on the Internet street (okay, NeoGAF) is that Prey 2 has been cancelled by publisher Bethesda.

Dutch site PSFocus claims to have heard the news from an inside source, and says that Bethesda will make the cancellation official this week.

A GDC presentation for the game was cancelled last month.

"Yes, Zenimax forced us to pull all Prey 2 related talks from GDC. I'm pretty devastated by the news. This was to be my first [conference] talk," said lead programmer Brian Karis on Twitter.

The game was scheduled to be released in 2012 on Xbox 360, PlayStation 3 and PC.