In Gotham City, an award show is being held where Gotham's finest is attending. The "Man of the Year" award is being presented to Bruce Wayne, with Lex Luthor being runner-up. All is well until a group of Batman's villains (consisting of the Penguin, the Riddler, Harley Quinn, Two-Face and Joker) show up as Joker steals the award thinking that he is more deserving of the title. Bruce sneaks out, changes into the Batsuit and becomes Batman. Along with Robin, Batman confronts and defeats all of the villains, but Joker escapes on a rocket-powered motorboat. After an extended chase to a nearby carnival, Batman captures Joker and he is thrown into Arkham Asylum while Superman arrives to greet the duo. Sometime later, Lex arrives at the asylum and breaks the Joker out using a weapon called "The Deconstructor" (which deconstructs unbreakable black objects, and is powered by Kryptonite). Joker then uses the weapon to release all of the inmates from Arkham Asylum; Penguin, Two-Face, Harley Quinn, Riddler, Catwoman, Bane, Poison Ivy and Scarecrow. Batman is called in to round up the villains. After fighting the villains in the asylum maze, he discovers pieces of bricks that have the energy signature from Luthor's weapon.