Arkhandus said:
And it's not been doing as well as WotC would've liked. They need to draw in the legions of Forgotten Realms fans, not the smaller legion of Greyhawk fans, to buy more of their products and such.
This is actually the exact opposite of the truth. Living Greyhawk was created with planned obsolescence in mind. All the Triads were told to make only 5 year story arcs because that's as long as the campaign was going to run.
However, the campaign dramatically exceeded the expectations of the RPGA. They expected most of the LG players to jump ship to Legacy of the Green Regent when they introduced it. They figured that the sales of the Living Greyhawk Gazetteer were quite small but the sales of the FR books were large so everyone would jump at the chance to play FR in a Living format. However, the play numbers on the campaign were disappointingly low.
The problem wasn't the campaign world it was set in. As far as I can tell, the feedback was that people didn't like the new rules that they created for Legacy of the Green Regent. There were level bumps every couple of month so everyone always had about the same level of character even if you hadn't earned them and there was only ONE storyline for the whole world so there was no regional flavor like there was in LG.
The same feedback was given to them when they created Mark of Heroes. People wanted regional flavor, not just one storyline.
However, some people liked the level bump system, so they tested out having a level bump campaign WITH "regions", which was Xen'drik Expeditions. Which I hear succeed pretty well, but they kept getting comments telling them that they wanted a campaign where you have to earn all your levels and didn't just get free ones. A campaign without a planned ending like XE has.
And it was about then that 4th Edition was also in the early planning stages. But the 5 year deadline on LG was coming up. So they just renewed it and said that LG would just continue forever given the popularity of it.
Now that we know more, my best guess is that they were told to extend LG until the release of 4e. I also know that Living Forgotten Realms was planned almost from the the very planning stages of 4e. 4e WAS planned knowing that it would be running in a Living format at some time and that it needed certain rules changes to make it easier to run by 10s of thousands of DMs with less rules variation and easier understanding of the rules.