Is Arkane Studios working on Prey 2?

Kotaku and fanpage Alien Noire (from May 17) are reporting that Arkane Studios (Dishonored) have taken over Prey 2 and are starting development from scratch.

Since publisher Bethesda fell out with original developer Human Head Studios, the game has been in limbo and according to the same sources the game was in development at Obsidian Entertainment for a bit and apparently British outfit Rebellion turned down an opportunity to work on it.

If this is indeed true it remains to be seen just how different Prey 2 will turn out in the hands on Arkane. The Kotaku piece pencils 2016 as an approximate release date, so don't expect to see Prey 2 anytime soon.