Dead Island 2 was noticeably absent from E3 this year. We spotted the beginnings of the title last year and had high hopes for what the game would do in the hands of a brand new developer in Yager Interactive. But alas all was not well with the game's publisher Deep Silver not happy with the direction or progress of the title, sending along an official statement on the development status.
"With Dead Island 2, Deep Silver has always been dedicated to delivering the sequel that Dead Island fans deserve.
After careful consideration, today we announce the decision to part ways with development partner YAGER.
We will continue working towards bringing our vision of Dead Island 2 to life, and we will share further information at a later stage."
So while the game is not cancelled, I wouldn't expect it until at least Fall of 2016 if not sometime in 2017. The original Dead Island was developed by Dying Light developer Techland and published by Deep Silver who retains the rights.