Despite Bethesda's statement yesterday confirming that Prey 2 is still in development, a new report on what's happening at developer Human Head has once again suggested that the game's future is uncertain.

According to a source speaking to Shacknews, the studio stopped working on Prey 2 back in November 2011 in order to try and secure a better contract. This lead to numerous staff having to be laid off, with the intention for them to be re-hired once a better deal had been agreed with Bethesda - talks with Bethesda reportedly stopped in March this year.

According to Bethesda the game's 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."

Shacknews also reports that Human Head has continued to work on a new "high-profile project" and that the studio is considering a sequel to Rune.