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S.T.A.G.E. said:

Sunset Overdrive is second party and Microsoft published it. Publishing does not denote ownership.

No one said Microsoft owned the SSO franchise. Insomniac Games is a 3rd party studio and own the IP, they are however not a publisher in any way, shape or form. Microsoft is. And when they publish a game on a console they manufacture, it's a first party game.

From the man who watches

"Releasing new IP and making it stand out is always a challenge, especially when you got Call of Duty coming with a massive game, you've got Assassin's Creed coming with another great game, you've got Halo there, and here we are with Sunset and in the end the number of bundles and custom consoles you do is not a huge percentage of the game sales, but I wanted to put a stake out there, our first time working with Ted [Price] and the team Insomniac, that this is really a first party game for us and we're really behind it."