WWE Attitude and Vince Russo’s characters and angles worked because they had never been seen before, or had been seen only on a much smaller scale (ECW). By the time he went to WCW, both had been exposed at a main stream level for close to two years. To compete, Russo was faced with the impossible task of making angles and characters that were as fresh in late 1999 as they would have been in late 1997.
This is unture. If this were the case, then both WCW and WWE would have seen their ratings decrease substantially after 1999. By then, the WWE had done the adult-themed story lines for 3 years. However, what happened is that the WWE continued to remain white hot for a full year after Russo left, and once Russo took charge of WCW, ratings and buy rates for WCW just accelerated the companies downward spiral.
It can be argued that if Stephanie McMahon had not been put in charge of the creative department in the fall of 2000, the WWE could have continued to thrive for another two years or more. Russo was good for adding edgy ideas to the product, but he was exposed as a horrible head writer, when WCW tried to give him full creative control of the company.
The only narrow pathway that might have allowed for this was to go more extreme than WWE. However this was an AOL/Time Warner company. There was no way Russo could exceed WWE’s programming, let along even match it.
This is what Russo apologists always bring up, and time and time again, it has been proven false. The angles that Time Warner's standards and practices nixed, was things like Lenni & Lodi's "ambiguously gay" tag team, the "Oklahoma" skits with him mocking JR's balls palsy, and other lower mid-card characters, that did not affect the main event scene. In fairness, Bischoff also blames Time Warner's standards and practices for not being able to compete with WWE, but it is simply not true.
What was produced was more of a lukewarm copy of WWE Attitude Era. One cannot also discount the whipsaw effect of replacing Russo in January and going to Sullivan, then going back to Russo in April. It destroyed continuity - suddenly Hogan was back to being a 1995 babyface - and made the product hard to follow.
Russo had done so much damage in just over 3 months to the company, that changing to Kevin Sullivan really did not accelerate the bleeding that WCW was incurring financially. It may have prevented Benoit, Malenko, and Guerrero from leaving, but that would be all. WCW continued on their downward spiral once Russo was brought back into the fold in April 2000. The irony of the situation, is that many people who stuck around to the bitter end, claimed that WCW was finally delivering some quality TV in their last three months of existence.