TiQuinn said:
I don't know.....this is all assuming that sales of the core rulebooks will continue at a steady pace. At what point do those sales dwindle? Have they dwindled?
They've dwindled since the release, certainly. At it's release, the
Player's Handbook was ranked #1 on Amazon.com. Now it's ranked 360:
http://www.amazon.com/exec/obidos/ASIN/0786915501/
This is a finished product, so it makes sense to cut staff. Hunker down and live off the sales of core rule books for a few years. The game will be sustained by 3rd party folks. Then, when the time is right, hire more folks and produce the mythical 4th edition.
D&D is a product, but it's also a franchise like Star Wars. Both have cycles. When a new Star Wars movie is in production, Lucas hires a ton of actors, lighting, and other movie people, and creates games, commercials, promos, and merchandise. Then the movie comes out, and gradually those people are let go (or set to work on other projects) as the buzz dies down. Then they're hired back on for the next Star Wars.
Same thing with WotC and D&D. Spend a ton of money producing the core product and related products, then cut back as time goes on... until it's time for the next core product.
Also, WotC is more than D&D. It's also Pokemon, Magic, and other board games and RPGs. With the exception of Chainmail 2.0, all those other game franchises are done.. they only need the occasional supplement. So why keep all these expensive employees?
I really think WotC is in survival mode, where they're cutting back on new development and letting it all ride for awhile. The market is flooded with quality games; it's better to consistently make respectable money selling core books (and that's it) than it is to try to fiercely compete for a piece of the supplement pie.
-z