To expand upon this: Cryptic probably though "If we go F2P, we will get more players coming in who will get hooked and either 1. sub or 2. buy cash shop classes." When their hypothesis turned out to be incorrect; they thought supporting CO was a lost cause (as they can't increase the profitability of it) and decided to pull their expert devs to work on STO. When STO's sub apparently wasn't working; they made the exact same hypothesis in that if they went F2P, they could recover/get more money.
And ofcourse; they didn't remember CO. And so when STO failed, they pulled their development to work on Neverwinter, leaving behind a skeleton crew to put out a couple updates a year. They finally got the message, and simply kicked off the game with a F2P model from the get-go. Doesn't look like they are endeavoring on anymore projects, though."Insanity: doing the same thing over and over again and expecting different results."
I also have to concur with Edge; it's arrogance that blinds these companies. They think that their big name title is so big that everyone will play (SWTOR, ESO) and survive; or that their "revolutionary/old school game designs" will attract tons of players too (WS, Tera). It's utterly infuriating that no one inside the industry can stop and think.