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Basically, what Aldy said, yes.
The reason the D&D fad ended were not management decissions, but serious competence on the RPG market, and the arrival of Magic the Gathering and easier to learn board games.
Now, you can accept that, the same that musical styles or clothing fashions fade away, or you can endless bitch about it and point fingers to other people, as many of the grandes of D&D have done...
I'd like to interview that lady some day, that at least is sure.
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I would like to see facts proving that Magic the Gathering had a negative impact on the RPG market. To me it seems more likely that it would have drawn people to the hobby than taking anyone away from it.
TSR seems to have been torn between people who knew games but didnt know how to run a business and people who knew how to run a business, but didnt understand the game or gamers. It would have been nice to have someone who knew how to run a business and had an interest/understanding of the hobby, but it seems like such a person was not available.
As Rafe says, trends change with time. But then again, WotC was able to revive the industry in 2000. It can be done again.
-Havard
Currently Running: The Blackmoor Vales Saga
Currently Playing: Daniel S. Debelfry in the Throne of Star's Campaign
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Nah, Magic didn't have a negative impact, but people didn't regard D&D as the top of the chain any more, that's for sure.
As to the future, it doesn't look that bad. I guess there will be a print-on-demand service for odler books coming sooner or later, and that will be the end of all the ZOMG THEY CANCELLED OUR FAVOURITE GAME hubbus.
If Wotc doesn't do it, then others will.