I still recall the pleasures of Battle Chess, in 1988, and before that, the Bard's Tale trilogy--1986 on The Destiny Knight, can't recall the date on the others. They were a quirky company, with Brian Fargo pretty much riding herd on the lot. I think that like many other companies, they lost the ability to take chances on anything except hits when development times and game complexity increased, though Fargo hired some less than stellar management choices. (Still, nothing as bad as EA.)
Actually what they seem to have had was an absolutely inability to make money on games in recent years.
IP lost money even while producing the Baldur's Gate series, the Fall Out Series, the Icewind Dale series, and Plaescape Torment. They further increased their agony by canceling three major projects, Torn, BG3, and FO3 after major investments into these possible titles.
Though they ultimately had trouble producing games, there was a serious financial problem at the heart of the operation for years that kept them from making money even when they did produce a hit.
