I wasn't entirely plain. I mean the more involved in the decision making process they are, they worse the product. Even outsourcing won't work if they don't know what they are doing and/or can't keep from messing up things they shouldn't touch. (Or rather, outsourcing especially won't work.)
What they need to do is retain some IP and similar rights, but otherwise give someone else the responsibility and authority to make it happen. Naturally, that also means giving this someone else the lion's share of the profits, which is why I think Hasbro will never spring for it. They don't seem to realize that a small slice of a lot, which also happens to enhance their core competency, is a lot more valuable than keeping everything under their own control but continuously screwing it up.
Or if that is unacceptable for some reason (i.e. Hasbro stupidity) then they need to hire an individual inside WotC that knows that they are doing, has experience, and let this person manage it. Of course, given what this would cost, that might not be possible either.
If it were me having to square this circle at WotC, I'd use a small but significant budget to set up a series of "prizes" and "benchmarks" for interested companies to pursue, with some kind of revenue sharing and/or buyout promises on success (and not all one-sided to WotC, either). I'd make it explicit up front that the standards will be multi-tiered and will grow as time passes. There'd be a generous but fixed timeframe, say 7 years plus extensions.
Then see what people do. If some of the existing VTT guys meet the benchmarks and standards (or already have them and don't mind participating), give them the award. If some guy in his garage pulls it off at some level, award him appropriately. Later down the road, there might be someone (or several) worth buying out/standardizing/consolidating. But if not, the investment and risk is rather slight.
On the troubles with the team thing, I've worked on some projects that dealt with almost project-killing blows, that couldn't be expected (though not a murder). I worked 80 hours a week for a year, after a fellow team member ended up in jail. After a year or two, you aren't competely recovered. But you are making progress and starting to come out of it, if managed halfway decent. It's pretty clear to me that the software teams over the last few years have been working with weights strapped around their ankles, and that's on management.
