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Interesting. Might work. Might not. Here's hoping it turns out to be the right decision for Funcom and TSW as the game has one of the few actually interesting settings I've seen in MMORPGs. Would be a shame for a game which tries something other than the same-old-same-old fantasy setting to disappear.
Heck, I wouldn't mind seeing a TSW singleplayer RPG get made as well. If they were to play their cards right they could have a franchise of some worth with that setting.