I'm someone who loves Arkane's PREY and was really interested in this the first few times we saw it but I feel like the odd one out because the more I see it, the less interested I become. The first few videos did feel like less of a game and more of a cool art piece but it's really lost all of that since, at least with what they've shown. (I was also worried how well their art piece would translate into a publicly released game.)
The worst parts of PREY are fighting the Mimics (because, like Headcrabs, they dart close to you and force you to look down all the time) and not being able to judge the facing direction of the Phantoms. This looks to have copied that but made it even worse. Fighting the little triffid enemies is less exciting than Mimics because at least Mimics could play hide and seek and use their Mimicry abilities to blend into the environment. Arkane later patched the Mimics, if I recall correctly, so that they'd stand up more often when they got close to you, so fights against them felt like less of a "try to wrangle an excited small dog when you have shoes made out of peanut butter" and more of a proper fight against an enemy that was roughly the same height as you.
This video barely had a pulse until the last 30 seconds when the protagonist started using the weird buzz saw staff in an interesting way. Up until then it was just clumsy melee combat that almost made Fallout look good.
I'm not as hyped as I once was but I'm glad it's not dead. Hoping it improves next time we see it.