Dire Bare
Legend
Public domain? It wouldn't get the resources it gets now. Who's gonna spend millions to produce tens of thousands of glossy full colour hard back books and novels if someone else can just copy it? It'd turn into a small press affair.
I'm not saying that might not result in someone doing something awesome with it; it probably would. But you wouldn't be likely to find that awesome thing at a decent price in local game stores spanning the globe with great production qualities, and consequently you'd find it increasingly difficult to find a D&D group. I have a hard time finding D&D stuff locally as it is, and that's with Hasbro's resources.
So yeah - it would likely result in the occasional awesome thing, lots of dreck, and highly reduced networks.
Private company? It has been before, it could be again. Plenty of things do perfectly well without being part of a publicly traded corporation.
This.
With no company that "owns" the D&D brand, and the game in the public domain, it's my opinion that the hobby would wither and die. D&D, like it or not, is the flagship brand that carries the hobby and acts as a gateway to every other rpg out there. Everybody playing rpgs right now would probably continue to do so, and even attract new players, but it would become increasingly difficult to recruit new gamers over time, and as the grognards start to die off, so does the hobby.
Now, if Hasbro spun off WotC into a private company again, or sold D&D to a smaller company like Paizo . . . . that would be cool. I agree with the other posters that the tabletop rpg would be better served by a smaller, privately held company.
If Hasbro keeps D&D, which is the most likely scenario regardless of how D&D Next does, D&D still has the potential to bring in the profit that WotC/Hasbro needs. Licensing a (damn) good movie series, tv series, and blockbuster MMO would be great steps. The best hope that I see is if WotC makes D&D accessible entirely as a digital product, while at the same time maintaining its "physical" presence as a face-to-face game. With the right marketing and some stellar game design, 5E could very well be the game's salvation.
I remain hopeful, but won't be holding my breath for it to happen.
