Addressing the original question: From everything I've read about Telltale, they've found that pretty much no-one ever buys a single episode of one of their games. Its either full series or nothing. So if, say, it gets split into three $15 episodes, people are going to complain about having to pay $45 to get the full game, not being happy that they only paid $45 for three games.
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- How do they justify doing twice the work on AE as NnT? The original AE was completed in less than a year after AO took around 3 years of development time, and we know that the bulk of the engine from NnT should be reusable in the same way as the original AO engine was reused for AE. There’s a lot of work to be done in producing art assets, yes, but they’re by no means starting from scratch this time.
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Except that they had very different processes for producing the art assets in AO and AE. In AE a lot of the levels are made up of prerendered puzzle pieces that could be rearranged in different ways to make varying screens. That won't work in an engine where each area needs to be modelled in 3d.