It bothers me that IP had access to the kind of talent they had working for them and mis-managed their business to the point where it was folding. They've only hung on by the skin of their teeth. This team was excited about the Van Buren, and they had a cult following - it's hard to understand why IP would cut production on it when they didn't have a solid plan, the only reason they could possibly have would be the cost, and that's why you seek investors - when you know you are onto something big and can't afford it, you go to someone who can afford it.
I don't know if IPLAY mismanaged their business or not, and probably neither do you. There ahve been a large number of developers and publishers who have ended up on the wrong end of cash flow. It's a major challenge for any media company: Investment is high, and payoff can be years away. Meanwhile, while you are developing your title, the market shifts, the economy goes bad, investors reconsider...
IP cut production on VB because they couldn't afford to continue development. The money ran out, and/or it started looking like the product wouldn't be sufficiently successful to warrant continued investment.
And no, I'm not an IPLAY apologist.
Now, as far as IPLAY creating an MMO, I'll say this again: The one thing that IPLAY has done right is to partner with a company that has experience creating an MMO. They know the engine, and they ahve done a considerable amount of preproduction. Also, MMOs are not single player games, to the extent taht differences are staggering. What works in a single player game may not work in an MMO. It would be better to understand these differences as early in teh process as possible,