Except they already tried to go the 4e route and that failed. And doing 4e over again is what they did with Essentials. And just trying to remake 3e would be doomed to failure as well, as they lose their current audience and have to lure an audience away from a company and game that makes them happy.
They can't beat Paizo at 3e, and they can't repeat 4e. So their real choices are to make a completely brand new game that goes in a completely different direction or they have to appeal to multiple audiences at once.
With one option they have a potential audience - a theoretical group of people that might buy the game. With the other option they have people who were their audience and have given them money before, they just have to win back as many as are willing to swap games. They don't have to get everyone back, but if they can appeal to a fraction of every audience and fans of all past editions that gives them a greater pool of fans to draw from. It's the best odds of success.
Eh, I still think they could appeal to the 4e audience by taking what is core to 4e, keeping it, and cutting down the fat and slowness and huge number of powers and whatnot. Essentials did not go far enough. Make a new 4e, 4e-er than 4e. Performing a fourier transform, if you will.
I really didn't have much to add there, except for the pun. Honestly I think it would be preferable to provide support for multiple lines. D&D once had Basic and Advanced branches, so it's not historically unprecedented. Wizards would garner more goodwill from the fanbases of previous editions by putting out new content for several editions concurrently than trying for a grand unification scheme, IMO.
But, even from what I've seen, I'd guess that the DM's are usually the most committed, and provide the bulk of the revenue to WoTC. Formation of D&D groups seems highly dependent on having folks who will DM (and who aren't terrible at it). So that strikes me as the core of the target audience.
I think that while DMs may be the most committed, Wizards has definitely in 3e and 4e at least focused more heavily on released targeted at players, for the simple reason that there are more of them. This is part of why we see the supplement treadmill; players buy supplements, not adventures or campaign settings. Perhaps DMs provide the majority of sales during the early days of a new edition, while later on when the production chain shifts to supplements, it shifts to players providing most of the revenue?
Unfortunately, I don't know what they want, en masse. From the posts here, a lot of them seem to want to keep playing the game they are already accustomed to. (Understandable, but it's hard to sell anything MORE like what they've got than what they've got.)
Bingo. So don't! Sit down and write some quality adventures. Tweak for each edition you want to support. Sell. Do the same for campaign settings. We're already seeing this in some places, like Frog God selling their modules in both PF and S&W versions. Unite the multitude of players under the common shared experience of similar (good!) adventures, rather than that of a shared system. Adventure prep is where many DMs spend a lot of their time; free them from that burden for a reasonable price and with quality content. This is where Paizo went when Dragon shifted to WotC's site, and it worked out very nicely for them, but I think WotC could do it better if they really tried. To use tech parlance, get out of platforms and start selling cross-platform apps. What Wizards is doing with 5e instead is in my mind more akin to
this.