Alzrius
The EN World kitten
So, yeah, 3.5 was pulled in (released early) because 3.0 wasn't doing well (enough for Hasbro, that quarter).
This is a good way of putting it, although it's worth remembering the reasons for the different expectations that Hasbro and WotC had. Hasbro's definition of "good enough" was to pick their books up for the immediate future after their electronic ventures failed to pan out.
By contrast, WotC's definition of "good enough" was that 3.0 be a loss-leader to help grow the gaming community:
Rick Marshall said:Wizards would initially focus on the three core rule books and pour as much production quality as they could into them. The goal was to create three marvelous books that would get everyone's attention and help to lead new people into the game (and old players back to the game), where the smaller companies would be able to offer them their modules and other supplements. Wizards was so committed to this that they were willing to lose money on the core books if it helped grow the game again. This was most evident in the money they poured into the Wizards of the Coast game center in Seattle, which was lavishly designed and pretty much lost money until Hasbro later shot it down. The goal was to lose money if necessary in order to make clear Wizards's commitment to the players and the larger RPG community.
You see, D&D didn't have to make much money for Wizards, because Magic was its bread and butter. That put Wizards in the position of being able to invest in D&D at a level most companies would find financially ruinous. It worked. It generated a ton of goodwill and rebuilt both the D&D community of players and the ecology of small and medium companies - at least until Hasbro took over and threw out the entire strategy.
People who talk about 3.0 not having made enough money often don't realize that that was by design on WotC's part. By contrast, saying that 3.5 didn't make enough money is also true, but that has to be taken in light of Hasbro's very high expectations. This is almost certainly true for 4E and Essentials also...and sadly, will also be likely for 5E as well.