User wrote:I'll repeat myself: There's a big difference between "doing ok, but not as well as 3e" and "on its last legs/soon to be no more 4e". What are you on that prevents you from grasping that simple distinction?
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Now look here:
I'll start by saying that I'm not involved with RPG market. I know stuff from casual observation, like 90% of others, but I don't know the inns and outs, and how it actually functions inside the publishing companies. Also, business isn't my specialty, but I do know quite a bit about running one as well as how its done due to unimportant stuff.
Now, here's how the stuff is being done. You are a company, and you have a product. You sell that product. The interest in your product (and, consequentially, the sales) increases at first more or less rapidly, then it reaches the certain peak. After that, it stagnates a bit, and, after that, people start losing interest in it. So what does the company do? They renew the product. Add some enhancements to it, some new additions, some new features, and start selling that. The new sales probably won't reach the peak sales of the original product, but, hey, they will do their job and prolong the product cycle.
Eventually, the inevitable comes, and you just can't renew the product anymore. People have lost all interest in it. So, you drop it, and launch a new one. And the whole story starts again.
So, in D&D world, you had 3E. For all intents and purposes of my explanation of things to you, that's the original product. It sells. Then, they keep publishing books such as Swording and Fisting to keep the interest of the customers. Then, they publish 3.5, which is essentially a new product a few years later. And then, some more years after 3.5, here comes the 4E.
What does that tell us? The product cycle of 3E & 3.5E lasted for about... 4 years? if 4E's peak is lower, and you agree it is, how long do you think before some imaginary 4.5 or 5e? 4 years? 2 years? Well, WotC originally planed for longer, which leads me into...
The WotC reformed business model. The DDI and the new PHB every year thing. What it basically comes down to is this. With DDI they wanted to generate income for a prolonged period of time. Which probably means that they thought 4E book sales would just not be enough. And PHB every year means that, in order to keep up, they would need a significant boost of sales every year.
Now, what was their intended level of sales objective? Well, they did practically stop any and all 3E support. And they tried to get in new people. That makes you think they were originally aiming for 3E-level peak or even higher.
And they failed. They did not recover the market share they originally had. Even Goodman's "its doing good, I won't say how, but it does" speech doesn't miss that. They didn't reach their objectives.
Now what does this mean, what are the implications of this, I don't know, that's something only known to WotC management. Maybe they'll get by with this failure just fine. Maybe they'll have to reform. Maybe they'll need to make unfortunate cuts. Honestly, there's no way for an outsider to know.
But I do know one thing. You know what you do when your invention fails? You go back to the drawing board.