I think it is funny that the current gaming generation is being called 'twitch'. BG came out in 1998. 2 years AFTER the biggest twitch FPS game ever released, Quake 1 (1996). In 1998, Quake 1 had a massive following, gigantic community. In 1997, QuakeWorld and TeamFortress came into existence. Ultima Online came out in 1997. Tribes came out in 1998. Unreal Tournament Came out in 1999.
So if I look at the games that came out in that time frame. How the fuck was anyone interested in a slow-paced, text based Baldur's Gate? It didn't even have good graphics for that time period!
Why? Why? Why? The answer is obvious, because people don't want 53 versions of the same exact fucking thing. I've said it before and I'll say it again: people don't want a WoW clone and they don't want a CoD clone. You might think it's an easy cash in but you'd be wrong 99/100 times.
Now if the answer is obvious, why do developers keep doing it? Because it is easy to sell it to producers. "CoD made 32 gajillion dollars, we want to make a game just like it, except here is why ours is better, fund us". It's so much easier than "take a risk on this game that I put my heart and soul into, I have absolutely no financial data for how well it will do". It is very rare that a studio gets to do what they want to do like that, often you only get that kind of love from a small studio that hasn't been bought out and answers to no one. It's one of those reasons I love Id Software so much: not because of how their recent games have gone, but because they do exactly what they want to do for as long as it takes.
Now let's talk Blizzard, "they warped Warcraft into an MMO and look how that turned out". Yea but Blizzard does it right, they always do. Look at the timeline: they came out with an incredibly successful Warcraft 3, giving everyone what they wanted, a revival of the Warcraft series with pretty much 0 faults and a modding community to keep it alive for ages (basically they quenched any nostalgia). Then they turned around and immediately went to work on WoW (possibly sooner). The cool thing about WoW is, yea it was a change of genres, but they did a lot to make it look familiar with the previous setting, so that you could go from WC3 to WoW and a lot of things looked familiar and enticed you, lots of lore was there, meet amazing hero characters from WC3 'in the flesh'. Not only that, they hired an incredible crew of inside developers and raiders alike to make sure they made basically the pen-ultimate mmorpg on the market. In hindsight? fucking flawless execution. And just when the RTS crowd was starting to get hungry for something else? They throw out SC2.
As for where is the current demand for good RPGs? I'd say the Witcher was exactly that. Nobody is making decent RPGs so some Polish studio had to step in and show the industry how it is done. Interestingly enough:
To look at some other current computer RPG devs: Piranha Byte's is in Germany. Ascaron is in Germany. Radon Labs is in Germany. Larian is in Belgium. .... So basically if it wasn't for Germany right now I wouldn't have a single good RPG? Nice.