d21lewis said:
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I think it will be more along the lines of something like this -
All the inmates from Arkham have escaped, and a huge number of Batman's enemies already in the city, have also taken over. Penguin, for instance. Two-Face. Etc.
Gotham has been put on lockdown, and basicly just shut down and left with all the criminals/villains inside. Batman goes in to restore order, and get Gotham back!
Edit: I should expand on that, as I got carried away with the Story, ratrher than why it's called Arkham City 
What i mean is, they locked it down... And it gets the nickname of "Arkham City" due to it being like all the inmates/criminals/everything, all locked into the City. Like it was just one huge Arkham Asylum.
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