Flying Lab explains the 7-server shutdown

Flying Lab CEO Russell Williams has explained the reasoning behind the recent shutdown of 7 of the 11 servers that host Pirates of the Burning Sea. In an e-mail to news publication Next-Gen, Williams gives a number of factors that went into the decision to close down over half of their servers and consolidate the in-game population.

Among the numerous reasons are the fact that they made some faulty assumptions concerning player balance and play style, based on the way their beta testers stressed the game more people showed up for the beta than stuck around after the official launch. Williams goes on to say " ... we have systems that require a minimum number of players to function correctly, such as our economy, and they break other systems if they're not working correctly (such as PvP). If we didn't have these kinds of interdependent systems, we wouldn't even be considering server merges."

For the full list of reasons for the shutdown, read the entire article. What do you think, Learned Audience? Was this the right decision to make, based on the evidence?
This article was originally published on Massively.