I read an article on here just recently about the history of 3D Studio apparently they where entirely remote back in the days of CompuServe which must have been fun to say the least, I did some remote projects back then and it was difficult. So I would say it does not preclude success but you have to have the right people. Open Source projects succeed every day in a completely remote development environment.
On of the things I noticed in the 3D Studio article though was that AutoDesk was in the picture early on and apparently acting as a publisher. While not highlighted in the article this may have been key to their success. The fact that they had a centralized agency acting as a sales force and marketing department, helped i am sure.