I'm reading this as "we hired people for this project, and if it did as well as we hoped, we would keep them around for our next big project". Probably the people who were laid off knew that their contracts would be an unknown variable.
Pretty much. They projected that the revenue stream from Elemental would be enough to pay for a second team working on another game. Those are the people now being let go.
By my reading of the post, I'd say Brad overextended himself. Several of those people could probably only be retained if this game actually succeeded in bringing Stardock into the AAA level of game production. But since the release was lousy, most of the new hires were "unhired". If he was smart, those people would have been temp-to-hire, contingent on the success of the game.
I just pray Stardock doesn't "cut it's losses" with this title and abandon it. That's the main concern that keeps me from shelling out 50 dollars for this game. While I realize their sales figures will probably have some impact on whether they continue supporting this game, I don't think my purchase will be enough to effect their overall decision.
Several people have said, "Don't buy it, wait a few months". I'd respond, "Don't buy it, see if it's still being supported in a few months."
Perhaps Stardock should consider lowering the price. Fifty dollars for a game that isn't finished is criminal. Thirty dollars for a game that is unpolished is typical for the gaming industry. I'd suggest a rebranding and price reduction in three to six months.