News: Your prayers have been answered, Prey 2 is still in development.
Superannuation, a blogger dedicated to ferreting out tidbits of information about canceled and upcoming games from unlikely sources, has dug up some details on the future of the Prey series from the United States Patent and Trademark Office.
It seems that back in July, Radar Group, the "entertainment management company" founded by Scott Miller (formerly of 3D Realms), sold the rights to Prey to ZeniMax Media, the parent company of id Software and Bethesda Softworks. A month earlier, Id's John Carmack made several comments about id's big growth plans after the company was purchased by ZeniMax.
Putting all this together means that it's highly likely that id is hard at work on Prey 2 (which was announced way back in 2006). Although no official announcement has been made as of yet.
We'll have more soon.