That's not true.
It's actually a mode in which Dante fights floor after floor of enemies and bosses, trying to advance through all 100 levels. It's been present in every Devil May Cry save for the first, and features leaderboards in 4 and this new one. So many palaces ruined by blood.
Bloody Palace Mode will make a splash on all versions of the game "shortly after launch."
Capcom is pleased to confirm that the highly popular Bloody Palace Mode will be returning in DmC Devil May Cry. Bloody Palace Mode will be available at no charge shortly after launch for all PlayStation 3, Xbox 360 and PC users. As in previous installments of the series, Bloody Palace Mode will be playable upon completion of the main game and deliver over 100 levels of demons and enemies, including five brutal bosses. Gamers will have the opportunity to top the global leader boards and be Bloody Palace's number one demon slayer as stylish combat will be recognized.