Next to Halo one of the most successful titles in the history of the Xbox and Xbox 360 is the Project Gotham Racing franchise. With the departure of Bizarre Creations from the Microsoft fold to Activision and their recent release of Blur, the future of PGR has been in limbo. (Microsoft retained the rights to the PGR franchise after Bizarre Creations left.)

For a while, rumors had circulated that Microsoft was going to tap Turn 10 studios with the task of developing a new chapter in the PGR franchise, but apparently they thought Turn 10 was too busy with Forza Motorsport and other projects to take on a new PGR title.

Microsoft apparently has been fishing around Europe, which is home to some of the best developers of racing titles, and considering their options for the development of a new PGR title to be released by Microsoft Game Studios at some point in the future. Whispers we hear suggest that Microsoft has listened to a number of pitches by several developers, but as yet they have not made a decision.

Sources suggest that Microsoft would like to find a developer that would continue the tradition of the franchise, while at the same time perhaps take it in a new direction with some new ideas. If they can’t find a deal to their liking, it is possible that Microsoft might ramp up at Turn 10 to bring the next PGR to life, but at this point that does not seem likely.

Expect Microsoft to make a decision over the next couple of months, with an announcement next year at some point. The news is good for fans of the franchise, as it doesn’t look like it is going to die.