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I believe that PGR is a MS-owned IP.

Bizarre was third party to begin with, they are now wholly owned by Activision (I believe that's the case).

PGR was published by MS, The Club by SEGA, and they were in simultaneous development. Only real difference now is that the only publisher Bizarre can work with is Activision.

...and there are miles-long histories of conflicts between those who are actually paying for the game to be made (publishers), and those making the game. No insight into what happened here, but it's rarely only one side's 'fault'.