That wasn't something I had expected to hear this morning. But yeah, Fez 2 has been cancelled. It seems this has been brewing for sometime and recently came to a head for Phil Fish, creator of Fez. I don't want to outline the series of events here, there are plenty of gaming websites dedicating themselves to cataloging each bit of information. If you are interested in reading more, i'll provide a link.
That said, it seems Phil Fish is leaving gaming entirely and I find that sad. I saw Indie Game: The Movie and he seemed like a guy very concerned with making the best game he could. I wonder how well I would do under similar circumstances myself, but I think the final product speaks for itself, Fez is a beautiful game.
I hope this doesn't effect Fez coming to OSX or Linux, it would make this whole thing even more unfortunate.
** EDIT 7/29/2013 ** Polytron has confirmed, Fez will still be ported to Mac and Linux. Very happy to see this. https://twitter.com/Polytron/statuses/361976275088310272