Speaking as someone who's been unemployed for 9 months after his company (a division of a 50,000 employee company) laid off the entire 550 person staff, I can certainly understand how layoffs work (especially since it isn't the first time). Hasbro isn't a company based on creativity...they see the writers as just literary engineers, and one game designer is as good as another, whether or not this makes any sense. Why was one designer let go, while another wasn't? Budgetary reasons, most likely. Someone like Jeff Grubb, who's been with TSR since 1e days (and is one of the best writers around), has probably acrued more vacation, pay grades and benefits than someone like the author of Sword and Fist. I don't necessarily like it, but I understand it. I don't like it when anyone looses their job due to economic reasons, Period. Especially when WOTC was the Golden Child for a while, and seemed like they could do no wrong (Magic, Pokemon, reviving D&D). Now, they're just like everybody else.
Hasbro most likely has no idea who Malhavoc is, for a start. And let's be clear, Malhavoc isn't a competitor...all the print materials they've released has come from S&SS, and they barely register in sales. More importantly, Hasbro is rating against their own perceptions and profitability margin. Making D&D unprofitable will result in no new materials, but Hasbro won't likely sell the D&D name, it's worth too much in name-recognition. Everyone knows the D&D name, and that's worth a great deal, even if they don't utilize it except for licensing.
I'll still purchase the WOTC books that interest me. This is the third or fourth layoff WOTC's had in the last two years. Things are tough all over, as they say. Am I unhappy that Skip and Jeff are on the street? Sure. But I'm more unhappy that
I'm on the street. Hurting WOTC more doesn't really accomplish much than put more folks out of work, which I'm not terribly fond of. They were paid for the work when they did it, and most of these works have been done for over a year, waiting for a space in the publishing schedule and budget. I don't know if they recieve royalties, though.
A petition might accomplish something, though I'm not sure what. But making Hasbro aware of the WOTC client base's feelings probably wouldn't be a bad idea.