And Heroscape? Isn't that a dead board game? Wasn't there some shake up about Target and Toys R Us essentially busting on Hasbro for massive discounts and it wound up in hobby land game stores? Not that those are bad, but the sales volume ain't there. Doing a quick search on Heroscape on Target and Toys R Us and it's the big '0'.
Two, the game was very popular until WotC rolled out the new version, at which point many players -- even fairly hardcore players, like myself -- said, "No, thanks." That was actually the beginning of the end ... but the end isn't (quite) here yet.
5E will be a LARP edition, and DDM will produce lifesize monster props made of cheese...
(*not speculation*)
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And Wisconsin's unemployment rate will drop to zero after they make the Tarrasque.
Almost the same exact thing happened with Wizkids when they came out with mageknight 2.0 and made major changes to the mechwarrior line (with the Age of Destruction makeover). You would think WotC would have paid attention considering how well Wizkids is doing now (i.e., out of business).
16 minis for $20. Bliss.Harbinger was extremely reasonable; unsustainably so, I expect. However, it was what we judged new packs by.
However, any problems with the Skirmish side were - to my mind - a minor part of the problem with DDM; the Skirmish game was a nice addition to the minis, but the chief purpose was for the D&D RPG. So, when the D&D RPGers slowed down their purchases, the entire line suffered.
From a business perspective, a revamping to 2.0 is likely to be a response to a decline in the product line. If they're still selling great guns, then they won't mess with it. When it starts to slip, though, a common reaction is to start tweaking it, hoping to gives sales a boost.To be fair, MageKnight had its share of problems before 2.0.
...
My own feeling is that D&D Miniatures Skirmish was in decline before DDM2.

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.