I read a lot of bleating about this, primarily from Paizo fans and the anti-WotC crowd, but the truth is, we don't know how well D&D is doing compared to PF. Nobody but insiders at Wizards have access to the true numbers behind DDi. Paizo is most certainly outselling WotC in the book stores, but Paizo also doesn't have a digital subscription service.
It may very well still be that DDi is a flop - like I said, nobody but the bean-counters and brass at WotC/Hasbro know for sure - but until anyone has some actual facts to back up these claims, they're just making noise.
Quite frankly, I don't care who sells more - I care about what I like - end of story.
I just suspect that a lot of this feeling of who outsells who comes from the echo chamber effect that is so prevalent in the General section of the forum, and at a lot of FLGSes, and even among peoples' own circle of gamers.
This is in part because the OGL was designed specifically so you *couldn't* put the genie back in the proverbial bottle. The license was modelled after the open-source software movement, and the "stick-it-to-the-man" part of me loves that, and wishes that it had continued into 4e.
If they had continued to use it for 4e, the market may very well have done more to embrace 4e (as Eric Mona initially thought it would*), and we might have a very different landscape in the RPG world today. Don't misread me - I'm not saying a better one, just different. In fact, I'm happy that the people that liked the 3.x architecture continue to have support. I wish it could be so for all editions, from OD&D, AD&D, BECMI, etc.
* the thread is still around on ENWorld. I didn't care to look it up, but trust me, it's here somewhere.
My point is that the lesson learned was not by WotC - but by Paizo. That the Open License
does help sales. It likely made 3.X as popular as it was, and helped it last as long as it did. (I do not count 3e and 3.5 as separate games, but I also don't count 4e and Essentials as separate games. If one was a new edition then so was the other, and 4e
has had the 4.5 that WotC promised would not happen....)
I think sales are pretty much evenly split between Pathfinder and 4e,
when the DDI is factored in. Little to no support for that assumption, aside from local observation. But given that the only eye's view that I have is local (my area is very Pathfinder-centric) the numbers that I have seen bandied by ICv2 seem a hair conservative.
That said, I expect WotC to regain the top slot because of the Christmas rush. How long they can hold it...? I expected Essentials to do much better for them than appears to be the case, so my abilities as a prophet are suspect.
People seem to think that having the DDI is having a license to mint gold pieces, but I suspect that development costs were high, and that maintaining and expanding the DDI also is higher than some folks think.
The fact that a lot of folks are polarized about the 4e rules is a separate matter. I hate them, some one else loves them, and Bob down the street doesn't care which he plays as long as he doesn't have to be the one running the game.
Yes, the OGL was designed so that it could not be retracted, but in creating the GSL WotC was still making the attempt to rebottle used djinn. That was
their part of the lesson.
Paizo's lesson was on how to make the OGL work for them. They are not fighting the terms of the license, but rather are using them to advantage. Making the rules easily accessible, putting search functions into their online SRD, etc.... WotC, on the other hand, locked away most of their material when the OGL was still new.
The Auld Grump