Chris Avellone why writers have stopped coming up with original,unique and insane settings like Morrowind or Torment? Is there no imagination left in the industry? And do you still daydream about alien new worlds filled with adventures and exotic encounters?
I think writers have, but maybe not as much in the RPG arena. Definitely in the indie space and the <10 million budget games (and I don't think PoE intended to be as "Baldur's Gate-y" at the outset, it just became that way).
It's worth noting that Planescape wasn't a Black Isle creation, it was a TSR/Wizards of the Coast creation (and they did stop doing content for it). While Torment eventually made a profit, it certainly wasn't at the same level as other titles in the RPG space, including ones already being worked on in Black Isle (Baldur's Gate).
Also, another thing to keep in mind is how quickly games return on their investment - just turning a profit doesn't equate to a success. I don't have the exact sales figures for Torment, but if a game recovers its operating cost in three months vs. three years, the former is obviously a bigger plus for the company when considering future installments or deciding whether or not to work in certain genres again. Ideally, you don't want a game to ever just make a profit, ideally you want that profit to be able to cover at least one more game without stress, improve the studio (hey, we can afford our own QA now, or hey, now we can have our own audio dept), cover employee raises and bonuses for hard work, and also be enjoyed by players and reviewed well, too, among other aspects. (A game can make a profit but tank critically, for example, which can perpetually damage a franchise and a studio.)
Would you attribute creative bankruptcy at any extend to 90's tech bubble making it possible to fund more avant garde projects and/or game development gradually becoming less of a scene and more of an industry?