Yes and No...
If they adjust and move to a smaller venue such as a large hotel with a large area for big events I can see them lasting longer by cutting down on spending on huge unnecessary convention space. So far, they have made blunders that have just hurt them. First year they went up against AX and I believe they did alright but it looked like they spent all of their money getting Japanese GoHs like SCANDAL and Kanon Wakashima trying to outdo AX.
Last year seemed like a con you would go for only a few hours and leave. No big time GoHs and I heard that Artists and Vendors were pissed off that they barely made anything that weekend since many attendees were assuming they would be at AX a few weeks later. Being a con in June sandwiched between Fanime and AX sounds to be a not so great idea.
This year they are already at a disadvantage with being on a weekend with a con that has a big reputation and huge financial backing in Japan Expo which will be held in Santa Clara, so there goes your potential attendees coming down from the Bay Area out the window.
AM2 can only get better if they would stop thinking big and make tiny steps year after year. What con was able to make a huge splash in its first year?
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