Of course, all of this should be taken with a major grain of salt, like any rumor of this nature. That said, if it's true and accurate, then the game will be re-revealed at E3 this coming June.
As you may remember, Dead Island 2 was first announced all the way back in 2014 at E3. At the time, it was in the works at Yager Development. However, in July 2015, Yager was dropped from the project, which was consequently put on ice. Then in March 2016, it was revealed Sumo Digital was being handed the game.
That said, earlier this year, THQ Nordic announced that Sumo Digital was no longer on the project, which had been handed off to Dambuster Studios, the team best-known for the very poor Homefront: The Revolution.
According to the rumor, the earliest version of the game was completely scrapped, however, you'd assume the work Sumo Digital was not, because there'd be no way Dambuster could churn the game out in a little over a year.
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Source: https://comicbook.com/gaming/2019/10/31/dead-island-2-release-date-ps5-xbox-scarlett-2020/
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