i think it was because it ran a ktm motor and they ended up making them almost exactly the same as the ktm they even look just about the same and ktm still sold way more of there bikes then polaris did. pretty much the same thing that happened with there jet skis and there ski boats they had other companies build the thing they just Thur there log on it
The only thing the same between the outlaw and the KTM quad was the motor. The KTM quad was 100% ktm. The suspension alone was built just for that quad by ohlins and had a market value of $2500 on the suspension alone. The frame was all KTM, the exhaust, airbox, suspension, steering geometry, was all much different then the outlaw. It's why it was a better quad. Also, the KTM quads were hard to come by because ktm only brought over a few hundred quads for the entire north America. Polaris did sell way more outlaws, one, because there were thousands of outlaws compared to only hundreds of KTM quads, also, the KTM carried a price tag of over $10K, hard to stomach for the average weekend rider. But much cheaper if you were to mod any other sport quad to be comparable in performance.
Polaris just got the engine in a crate, and built the frame around that, used their own suspension, exhaust, airbox, etc. It's why the outlaw and the KTM quad with the same motor had vastly different performance numbers. It was all the other things KTM did that made theirs faster.
I believe ktm stopped importing their quad after two years. I am not surprised Polaris has discontinued the outlaw. Sport quads are not selling. You can find 2007 or 2008 outlaws new for sale at dealers still. For the longest time, Polaris has been trying to just give away the leftover outlaws, and haven't been able too. The market really started to dry up in 2008. And for most people, utility quads have enough performance for speed and handling, plus the benefits of towing and hauling.
Also, not correct on Polaris's watercraft. They did build them, not somebody else and then they stuck their name on them. They just stopped production in 2004 because their profit margins where not high enough to continue them. They look at each section of their products individually for profit, and of one isn't selling, they axe it. Watercraft was the first cut, sport quads have become the second causality.