AbdulAlhazred
Legend
Frankly, I think their mistake is that they keep publishing new games under the old Dungeons & Dragons trade mark. This makes sense with computer games, because computer tech advances. It does not make sense with tabletop games - Hasbro don't publish "Monopoly 5e" with all the rules different. RPGs are a lot more like monopoly IMO - they work best as evergreen products with full backwards compatibility:
Call of Cthulu
Traveller (except New Era to some extent, and that failed).
Runequest
Dungeons & Dragons, 0e through 2e AD&D.
3e D&D maintained a degree of backwards compatibility, though not enough IMO. 4e did not do this at all; in 2008 it almost aggressively rejected the previous 34 years of play. I like 4e a lot, it does quite a few things in un-D&D ways that I personally like better than the D&D way (magic, for instance). The game, however, clearly does not 'remain the same', and that IMO was a mistake for the larger market. If they want an evergreen product, they need to maintain continuity with the past. If they want a new product, brand it accordingly. And promote it in Dragon magazine, which should be a general RPG magazine again, not the sad thing it has become. Dragon isn't there to make money in itself, it's advertising - it's there to promote your product, promote the hobby, and grow the market. It needs to be (a) cheap and (b) on store shelves of games shops and larger newsagents. Heck, give it a computer games section again, sell it to the computer gamer crossover crowd.
Eh, 20th Century thinking IMHO. Consider, Traveller is basically dead, certainly isn't making Marc Miller or anyone else any significant money. RQ is likewise dead. CoC staggers on, but ToC is eating its lunch at this point (and is IMHO a far better and more modern game), etc.
Store shelves are just not where you get eyeballs anymore, and Dragon was always nothing but a TSR/WotC house organ. While in the VERY early issues there was now and then some minor nod to the existence of RPGs and gaming outside of D&D it was always basically nothing but a D&D magazine (and I say this as someone who's subscription goes back to issue #11). Dropping the D&D branding from your FRPG would be ludicrously bad for WotC. There's no reason for them to do that, and no real reason for it to matter. If they can't change the game in any really meaningful way then there's no point putting it out at all, and no point in anyone buying it vs just playing the 1e or 2e or whatever that they already own.
In this day and age you need a presence online, you need your entertainment product to be accessible online, and you really ultimately want to be able to charge incremental service charges for access to it. That's just the business reality that exists today.