I'm more interested in this perception that Wizards seems to be taking regarding piracy and their support that they have to do everything they can to not lose a sale. Why are they so against piracy? Copyright protection and a 10 to 1 loss in sales.
I suspect they are doing the same thing with cancelling books and the like: they aren't willing to risk publishing books if they can not turn a profit with these books.
It seems to me that the problems seems to be that the choices that Hasbro is making for Wizards are ones where they want to make the most money with the fewest risks possible, and at least to me, this seems to be backfiring. And I bet they are most disappointed not that they are getting a lot of money from what is working, but that Wizards had projected a larger revenue from these projects and it seems like it's not generating the amount Hasbro is expecting.
I suspect Hasbro has found that the brand works for marketing tangent products and not for the actual products themselves. So you're going to see more D&D video games, board games, and novels. Those work, those get Hasbro the profits they are looking for. 4th Edition and Essentials? Not so much.