I think an important comparison that would need to be made would be:
1) What were revenues/margins for the years before DDI
2) What are the revenues/margins after DDI.
If they're making money hand over fist with DDI subscriptions it may not matter if book sales dropped so much that overall they're making lower margins.
The total change in format with products coming later this year, the continual layoffs, and the continuing start/stop on the miniatures line makes me wonder.
Well, let's not forget a couple of things. First, everything is entirely speculative, so, we're all shooting in the dark.
What is the total change in format later this year though? Sorry, haven't been keeping up with the latest news.
The continual layoffs is pretty much par for the course, unfortunately. I mean, you only have to look at the threads during the 3e era and you'll see, pretty much every Christmas, from about 2001 onwards, someone was getting the boot. It's a sad thing, really.
But, I don't think you can see the DDI as anything other than a success IMO. The constant revenue flow has got to make life a lot easier. I know I heard Erik Mona talking about print Dungeon and Dragon and they would get paid by their distributors some six or nine MONTHS after a magazine hit the shelves. That's a HUGE outlay of cash that you're not getting any interest on. If nothing else, you have to factor in the three or four percent on the dollar you lose from the distributors.
At the end of the day, if the numbers that have been bandied about in this thread are even remotely true, I would think that the switch to an online format has to be seen as a win for WOTC.