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MoHasanie said:

However when Microsoft announced the Xbox One we felt that what Microsoft was offering in terms of the platform feature set and Xbox Live presence was a great match for Sunset Overdrive.

For example, our multiplayer mode in the game called Chaos Squad supports eight players traversing a giant open world together to take on randomized missions. This is not a simple feature to create. Yet Microsoft’s muscle on the platform and Xbox Live fronts has been invaluable in helping us create a unique multiplayer experience. Furthermore the overall partnership has been seamless, and we’ve been extremely happy with the level of support and commitment we’ve received for Sunset Overdrive.

Translation:

Here's a flimsy reason that doesn't stand up to scruitiny followed by a longwinded version of "they gave us lots of money".

People need to vote with their wallet on this one, I doubt Microsoft will be as generous with them the second time around if it doesn't sell well enough, even more so if they don't intend to make a second and try to run with an entirely new idea again.

IMHO, Insomniac should have moved to WiiU