Everyone is competing for our dollars, but WOTC and GW target different subsets of the gaming community and use different strategies. Some gamers are interested in both, but RPGs and war games don't inherently overlap. Even in just the realm of sci-fi war games, you have GW 40K, Infinity, Mantic Warzone, Spiral Arms Studio Maelstrom's Edge, and a bunch of others directly competing for that specific audience. GW wants to publish fiction and rules, sell plastic models, sell paint, and dominate the hobby community as a walled garden. WOTC, meanwhile, focuses on rules for fantasy RPG gamers with a much more open attitude. Oh, and they sell cardboard crack for MTG CCG gamers. Different markets and different strategies.