Before its recent acquisition by Activision, Microsoft had already told Bizarre Creations that it would no longer be used for the development of future instalments of the microsoft-owned PGR series - thus ending a close working relationship and presumably prompting Bizarre's eventual sale.
According to a source within Bizarre who cannot be named (such is the way with such things), Microsoft had informed Bizarre that it would be taking development of future Gotham games in-house, before its then owners had decided to put the developer up for sale.