. . . So did they mean they had to Model everything anew?
Something I've found particularly frustrating over pretty much the last decade is how often people inside Frontier mostly seem to think that anybody who wants to play these games can be nothing except consumers and that alone, both ignorant of and incapable of understanding 3D modeling (in general or for games), any aspect of game development, etc. No, they shouldn't have to model everything from PC1 anew to put it into PC2, unless something about their internal processes that they're not revealing requires it. Some minor cleanup/updating per piece, sure, and that'll take artdev-time and resources that they should be appropriately compensated for. But “appropriately compensated for” is not full-price for same-old with a bit of spackle'n'paint. (Which is not to say I object to same-old -- I want everything I'm playing with in PC1 to play with in PC2 with its current features, and I'm willing to pay a fair price for that.)
But there's a limit to how thoroughly anyone can speak in a quick interview -- if what somebody's said sounds like somebody back there's insisted that everything be made from default-cube scratch, that's almost certainly a communication issue rather than what's actually happening behind the scenes.