All I hear is, "We bit off more than we could chew."
That said, I get it. I totally understand and actually have been expecting something like this for some time. With every conversation having to be a cutscene dialogue even with the most minute characters, ANY story branching is going to be costly and difficult.
I'm just hoping the game doesn't suck in the end as a result. It starts strong, but I'm afraid it'll finish poorly.
And all I also hear is, "All your suggestions, players, are pretty much going to be ignored forever. We've got bigger fish to fry. At this point, take it or leave it."