There's already too much work in these figures to justify the LOW cost. If they rethink them and continue to do them, they'll have to raise the cost. The amount of research and development that goes into a LotR figure is twice as much in time and resources than any other figure.
But you may be right, the demand may not be there from LotR fans. I wouldn't want them to cheap them out and SSC certainly wouldn't want to do that - so that means not doing them anymore.
The price of these figures is not entirely determinated by R&D, material costs and license costs, ... . Perhaps SSC should be a bit creative with the profit margin of these figures? Face it, scores of retailers offer SSC products at a lower price. So, if they can do it, why can't SSC? I don't know if it's true, but I once read here on the board that retailers have to guarantee that they will not offer SSC products below a certain price. That tells me, that these items could be sold at an even lower price, and still be profitable. Less profitable, but still. I don't think that this automatically means that the quality of the product will suffer.
I said it before, and I say it again: let somebody publish the netto price of a 12" figure versus the retail price, and then, let's talk again. It'll be very interesting to see, which amount of the $70 we payed for Frodo goes where. In the end, it's all about profit, and not about doing collectors favors. So, what with the future of the LotR line? If SSC manages to keep this line attractive to collectors (or should I say, make this line attractive again...), there's a future. I just don't belive that continuously raising prices is a convincing way to do it. A price drop on the other hand...
What ever. They don't have to fear bankruptcy, since exclusives collectors will continue to buy straight from SSC,
because of the exclusives. So, their method of binding a certain kind of collector to a certain kind of product works. At least, until the next price hike... .