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Of course, Blizzard didn't start off this way, and weren't 5+ years into development when they released their first games like Blake Thorne, Lost Vikings or WarCraft 1 to build up their first capital and early fan base.
I'd say there are three realities about Blizzard that can't relly be emulated into Game Dev Tycoon: the hype (scrapping and re-starting a game over doesn't carry over the hype), working on multiple projects (while Blizzard was slowly working on a StarCraft sequel, they also had teams developping games in the Diablo and WarCraft franchises) and Expension Sets (with the possible exception of the Beyond the Dark Portal expension for WarCraft II, pretty much everyone who bought one of their later games also bought the expensions sets, stretching the sales cycle of their games to years, way beyond the longevity of games in Game Dev Tycoon).
Then again, that's how the industry currently works if you want to get "big", but I'd really like to slow down and release fewer big games on longer release schedule. I.e., every three years or so.
But as far as I noticed, it's impossible since you need a constant stream of revenue in order to satisfy your studio's expenses.
After I built the engine over and over, I researched the new Graphics Engine, and then rebuilt it one last time with it installed. I then built the game and released it to a 9.75 with something like 40m in sales for a total 35m profit. I forget the exact figures, but you get the picture. I also did a lot of Developer Training during this time as well just to make sure my team was improving.
I think this idea you're thinking of could potentially work once you have a sizable bank account to fall back on. As long as you're building new tech and you're keeping your devs trained up, this could theoretically work. If you get the sliders right, and do well on the actual development - the game should give you a respectable profit.
I've noticed that I have moved into a situation where every game I release takes about 2 years of time, but always comes back with a huge success.
I don't think this is feasable in the early stages, but once you get into the 50-60m range, you can afford the loss of a single game and do okay. Something to tinker with anyway...
To take several years to release a single game is not the normal thing to do, neither in this game nor in real life.