Well, they kind of did hand development over to the dedicated fans. They gave the source code to everyone that has the game, and stated that they would love for the modding community to make the game grow from there.
It's not like they don't know that this was a problem. I mean, people lost their jobs over this. Yes, the layoffs were tied to another game losing its funding (Majesco dropped almost all games it was publishing) but I can't imagine them having laid off the lead, and creator of Spacebase at that time if they were particularly pleased with how he handled development of his game.
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My bowels hurt.
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