Quoted from markmon:if the dev cycle for software is (for example) 2 years per game and the cycle for mechanics and manufacturing is 1, all you need is enough software guys so that one guy can keep working on one machine until it's done. At this point stern has 2-3 real releases per year but it has 4 lead software devs so it actually does work out and it does keep pace but just to be more behind.
Okay, so software development can keep pace with production. So why are they releasing half-finished games? Slow the release cycle for a couple of years until games are actually finished when they start selling them.
Quoted from flynnibus:
When the work backlog gets too big - you evaluate what is most important and if the work items are still relevant... And drop stuff that never will feasibly get done. You don't "fall over" -- you decide what is not worth doing.
That's fine up to the point that customers decide that buying their games is not worth doing. Short-changing customers on advertised features, taking years to provide a finished product, failing to address software bugs is eroding the consumer goodwill that Stern relies on, and it is setting them up for a fall.