EDIT: I should stress though, the title would not have existed without Nintendo. That cannot be denied.
The finality of this statement, and the source of it (PG themselves) creates some pretty ghastly implications as far as the fate of the franchise is concerned. I wish more people understood this.
Bayonetta may have sold 1.3 million copies but we don't know how much it costed to develop or what the financial agreement was between PG and Sega. For whatever reason, Bayonetta's fate was very much up in the air. What defines a success has a lot to do with what exactly happened during development. Selling a million copies guarantees nothing these days. Lord knows we've all heard the Tomb Raider horror story by now about 3 million units sold not being enough to break even due to monstrous development costs.
Coupled with the shoddy ps3 port that Sega themselves put out, and its quite clear that they really don't have much investment or respect for the franchise. Or any of their franchises, for that matter.