Set six months after Origins' events, the game's story follows a younger and less experienced Batman, who attempts to stop a mysterious villain called the Rat King from destroying Gotham City on the Fourth of July, and depicts his transition from a violent and vengeful vigilante into a symbol of hope.

In the game, the player assumes control of Batman, who must stop a new villain called the Rat King from unleashing chaos in Gotham City.

Allies of Batman include his loyal butler Alfred Pennyworth (Martin Jarvis), philanthropist Leslie Thompkins (Mara Junot), Wayne Enterprises business manager Lucius Fox (Dave Fennoy) and Gordon's daughter Barbara (Chelsea Kane).

The game primarily takes place within Blackgate Penitentiary, which is run by Dr. Jonathan Crane (Elijah Wood), Dr. Harleen Quinzel (Tara Strong), and TYGER head of security Lyle Bolton (Earl Baylon).

Among the prisoners are crime boss Carmine Falcone (Darin De Paul), the Joker (Baker), Joe Chill (Armin Shimerman), Ratcatcher (Khary Payton), Killer Croc (Payton), Arnold Wesker (Dwight Schultz), Ferris Boyle (Stephen Tobolowsky), Bronze Tiger (Zeno Robinson), Black Mask (Brian Bloom), Deadshot (Chris Cox), Firefly (Crispin Freeman), Bane (Fred Tatasciore), and Deathstroke (Rolston).

A number of supporting characters, including Boone Carver / Shrike (Rick Gomez), Vicki Vale (Ali Hillis), Andrea Beaumont (Amber Hood), Thomas Wayne (Andrew Morgado), Martha Wayne (Salli Saffioti), Selina Kyle (Chantelle Barry), Vic Sage (David Dastmalchian), Penguin (Nolan North), Sal Maroni (Baker), Jack Ryder (James Horan), Anarky (Matthew Mercer), and Gray Ghost (Smith) also appear in the game.

At the GCPD headquarters, Batman meets with Commissioner Jim Gordon and District Attorney Harvey Dent to discuss the Rat King.

At the hearing the following day, Crane attempts to drug Malone with fear toxin, but he knocks it away, causing it to splash onto and disfigure Dent's face.

Batman boards a ship with many inmates awaiting in cells, Nakano among them, and discovers that the Day of Wrath is an attack on the GCPD and that the Rat King is an alternate personality of Dent.

After the ship crashes into the GCPD building, Batman finds Dent holding Joe Chill, one of the inmates he befriended as Malone, at gunpoint.

While Chill leaves after apologizing, Dent struggles to process the revelation of his friend's double life and attempts to jump off the building, but is saved by Bruce.

Although Dent has seemingly no recollection of his actions as the Rat King, including the reveal of Batman's identity, the alternate personality tells Bruce that "this is the beginning of us".

Following the release of Iron Man VR in 2020, Meta Platforms approached Camouflaj for the development of a new project with a bigger budget and larger scope.

His response was “We hope we make it a really easy decision for leadership over at Meta and at Warner Brothers to tap us on the shoulders to do a sequel... [And] we would very much love to do that.” While it is not confirmed, it is likely.

He characterized it as working "surprisingly well" and "interesting", though he criticized the stealth sections for their controls, as well as the game's bugs and boss fights, citing most of them as "unmemorable".