Microsoft have given up the publishing rights to the Alan Wake series of games, with the rights now reverting to Remedy, who are the owners of the intellectual property.
It seems that Team Redmond decided that there was no opportunity for a return in investment for a potential Alan Wake 2, which seems like a bit of a missed opportunity frankly. While it's reception may have been a little underwhelming at launch, it's amassed a cult following over the years.
The original only sold around 3 million copies on it's original Xbox 360 release though, and Microsoft have been very skeptical to do anything with the franchise since.
There's some possibility now for a future title, though, now Microsoft no longer control the publishing rights to the franchise, and with a potential TV adaptation currently being developed, it seems logical to also release a new game.
In the mean time, Remedy is due to release it's next game, Control, this August, which is a supernatural action adventure with some pretty impressive destruction physics and cool super-powers, such as telekinesis.