Clint_L
Legend
These are really the same issue.When I typed "it was a factor" it should not have been construed to mean that I was arguing it didn't matter. As far as I understand it, in the aggregate, TSR was still making a profit overall on their RPG sales even if one or more product lines didn't make them any money. One of the biggest problems TSR had was with their practice of factoring and the use of Random House as an informal bank. Without factoring or using Random House as an informal bank, TSR probably would have chugged along for a few more years.
Overall, TSR was losing money on RPG sales. That doesn't mean every book was unprofitable - the core books were still probably making money even in the lean years. But they were publishing a ton of other books that were losing money, and that business model basically developed because of the Random House deal. Essentially, they were publishing a lot of those different settings because they needed a constant stream of publications to keep the Random House advances (which were really basically loans) going, but in doing so were exacerbating a feedback loop that was spreading their own diminishing consumer base between rival versions of the game.
So the more they published, the more they needed to keep publishing, even while a huge number of books were being returned unsold.
Edit: This is likely why WotC has been so conservative with the 5e publishing schedule, and why they are reluctant to give most settings more than one or two books. They don't want any setting to become, in effect, its own version of the game.