Massively has a nice two-part interview (linking not working atm…) with two original Shadowbane, and now Wizard101, devs that is well worth reading.
The story behind Shadowbane is a familiar one. New devs biting off more than they can chew, having more ideas than time to code them, and ultimately a lack of funds forcing a release and dooming the product. The final bit, about announcing the game too soon and getting people hyped too early (while also possibly allowing the game to get funding), is very interesting and really highlights how screwed up funding can be.
I played Shadowbane briefly during beta and at release, but it was basically unplayable on my machine at the time (5-10 FPS), and by the time my hardware was upgraded and the game was fixed up, I had moved on. But I played the game enough to see the good parts (city building, sieging), and it is telling that no major release since SB has attempted some of the things they had going.
It would also be fairly humorous if these guys took the money they made with Wizard101, a F2P kids game, and created Shadowbane 2. This time armed with all the lessons learned and a proper budget. One can wish.