AO has been running for 11 years now. for the last 5 years or so they have had a small dedicated dev team of 10. now they are down to 8. which is more than enough to run a well established MMO with a decent player base. you can outsource for art assets, models etc these days pretty cost effective.
COH could easily have been run the same way and been fine for several more years. 8 million a year is more than enough to fund an established game, pay a small dev team, and pay for outsourced assets.
as for the comment below that says salaries were the issue? REALLY? one quarter could have easily paid for the salaries paid at prevailing wages in the industry and benefits.