The reoccurring theme we hear is this company was Curt's baby. This was his passion. He did not want to give up big stakes or control of the company. I think he actually made a mistake by not running the company himself and in hiring the CEO and execs they had. I'm curious if the CEO, the girl from Comcast, actually had ever played an MMO, and what she contributed.
Tha game probably wasn't too appealing to any VC group looking at 1,3, and 5 year ROI. No VC group gives a hoot if they have Rolston or Salvatore or Mcfarlane on their project. The numbers would not add up. I'd be really curious to hear a non-spin Curt post mortem and to see if he could do it over, if he'd run the shop himself, be more of a miser, and hire a single good manager with a solo simple first product planned for marketplace.
I disagree with many of Ut's points, but I do believe .38S has really hurt future small companies trying to get funding for games. It's also probably set the MMO genre back quite a bit. I'd love to have Gates/Buffet levels of money and be able to make an MMO, but it seems these games are not very good investments. How many MMOs has MS eaten tens of millions of dinero to not release, let alone their Turbine stuff?