Lego Batman: The Videogame is notable for being the first Traveller's Tales Lego game to have an original plot. Unlike previous Traveller's Tales Lego video games, it is based more on the concept of a media franchise, rather than following the plot of a particular movie or other story from it. The game features Batman and Robin fighting crime and villainy in Gotham City. Batman's most dangerous foes have all escaped from Arkham Asylum and divided themselves into three groups of five, each led by a well-known villain with plans to achieve a personal goal:

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