They are in trouble, that's safe to say. In fact, a lot of websites are in trouble. Unless your site generates literally thousands upon thousands of hits a day (and some sites do), ad revenue is simply not enough to support a business. Also, businesses are paying less for internet ads seeing as people are starting to just ignore them. I mean, when was the last time you purposefully clicked on an internet banner ad? The last time I did that was about 4 years ago. There's no point in shelling out big dollars for internet ads when they probably won't help your sales, right?
Also, the escapist still hasn't found a way to make really good scratch. I paid for a subscription, mostly because I just wanted the escapist to stay alive. Not because it offered anything even remotely interesting. And that's the problem - you can't expect everyone to give you money out of kindness - you have to incentivize them into giving you money, and the publisher's club subscription really.... doesn't offer much of anything.
Also, their store is devoid of anything useful.
Will they go bankrupt? Hard to say. Internet businesses are very flexible - they can cut staff, cut pay, or get rid of any offices they own (that should cut a ton off their operating expenses). Certainly if they don't generate more revenue, AND SOON, they will probably have to start taking the axe to the staff roster or ask for content contributions from fans for no pay (I wouldn't mind doing that, seeing as it's a good way to enter the internet publishing business - except that I have no talent for writing and I already have a reasonably well paying job).
It's a bit sad. Zero Punctuation is what catapulted the Escapist into the limelight - but ZP, while still worth watching, has lost its edge (4 years of more-or-less the same-old-same-old will do that to any show). Extra Credits was looking to be the next ZP (as evidenced by the legion of fans who donated for allison's surgery), but due to disagreements that fell apart. Aside from that.... who else do they have? What else do they have? The Escapist makes good reviews - but so do many other sites. As much as I like the content on the escapist, we'd be kidding ourselves if we pretended it was famous. I like "Critical Miss" and "Escape to the movies" and "The Big Picture" a whole heck of a lot, but I haven't heard a single thing said about any of them outside of this website.
I'm afraid you're going to have to start copying a few of the things the other sites have done in order to stay afloat. I don't like Gamespot or Gametrailers very much myself, but the numbers don't lie - those sites get traffic. A lot of traffic. You've got to start copying them. Assuming you have the resources to do so.
