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The reasoning is plain and simple, they do not have near as much interest in the games anymore. The last tournament, they had a higher signup rate at during CE days when it wasn't even known about then they did at the last tournament.
They can't keep passing out $30K-$50K worth of winnings if they don't have enough teams to cover the cost. They get sponsorship money and so forth but only having around 50-60 team register is a huge difference when they were running tournaments in H2 and H3 when they had to turn teams away after the 100 mark. I recall the tournament that was run in STL as I helped judge had something like 120 total teams.
120 x $400 = $48,000
120 x $500 = $60,000 ($500 was for later sign-ups)
Top 12 teams get free entry, so they still only made $48K-$60K on Halo, but the payout was I think $45K total. They also have payments for visitors but still, Halo needs to pull 80+ teams to make it worth their time and effort.
Reach fell off the main stage to SC2 and MW3. The live streams on their website also had well below average turnouts for all Reach events. The game period just sucks.
Halo CE is what created MLG, forgot was it was called before MLB but Sundance and Puckett still ran them. Amazing to see, that Reach is now helping destroy the community.
[Edited on 02.02.2012 7:54 AM PST]