Its not like they've wasted money on the sequels yet, have they?
They called off the the sequel approximately
one week before it was due to start shooting. So, yes, they must have already spent a decent amount of money on pre-production. You can't be one week away from shooting and not have invested in sets, costumes, casting, scripts, etc, etc. In fact, they were planning to shoot the second and third films back-to-back, which means they must have already spent money pre-producing the third film as well. IN ADDITION TO THIS, they already had a screen-writer working on the prequel trilogy and were shopping around for a director. They had also bought film options to all 9 books in this series.
Calling off the shoot at the last minute means they didn't have to pay salaries to the film crew or cast, nor pay for any post-production expenses (eg, editing, visual effects, etc), but to imagine that they haven't invested any money on the sequels is absurd. And all this money was spent before the first film had even been released. That is, before they even knew if it would be a hit. It is abundantly clear that they weren't just carefully planning for sequels (as you suggest is wise), they were arrogantly assuming that the sequels would be made no matter what. I think this is the mindset that lead to them making a series of bad creative decisions when adapting the first book, which lead to it being a flop.
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