3D Realms has said over the past week or so that they would reveal a "New Project" at E3 this year. Well CNN/Money's Game Over column is reporting that the "New Project" is actually the formerly cancelled title "Prey" which in the late 1990's was quite anticipated. According to the column the game will be using the Doom 3 graphics engine, but there is no word on whether the original story line will still be used. The game was originally based around a Native American named Talon Brave and he would of course be destroying lots of bad aliens.
While 3D Realms announced just recently that the long, long delayed Duke Nukem Forever would be using Meqon's amazing physics engine in the game, there was no mention whether or not we would actually see Duke Nukem Forever at E3. So while 3D Realms is still busy with Duke, they have handed off development of Prey to a 3rd party developer and are overseeing it's development. According to CNN/Money Take Two Interactive has been tapped to be the games possible publisher.
News source: CNN/Money Game Over