How Long Before the Digital Dam Breaks?

The recent crash in pricing for digital comics provides a data point for the future of electronic versions of tabletop books, 3D-printed miniatures, and terrain. How long can retailers keep their price points for physical product before the dam breaks?

The Line is 99 Cents

Many businesses are being upended by the move to online sales, as products transform from physical to a digital format. Chris Anderson at Wired explains why Web content continues to get cheaper and cheaper:
It's now clear that practically everything Web technology touches starts down the path to gratis, at least as far as we consumers are concerned. Storage now joins bandwidth (YouTube: free) and processing power (Google: free) in the race to the bottom. Basic economics tells us that in a competitive market, price falls to the marginal cost. There's never been a more competitive market than the Internet, and every day the marginal cost of digital information comes closer to nothing.
This is the challenge facing the comics industry today. Comics in digital format is not new, but as the market has matured some patterns are emerging. For one, the massive back catalog of comics are plentiful, such that anyone seeking to jump into comics no longer has to worry about the significant barrier to entry of hunting for a comic. One side effect of the availability of these digital comics -- and the desire to bring fans up to speed quickly on hot properties as they are launched in films and TV series -- was deep discounting. According to ICv2 columnist Rob Salkowitz, this has had the unintended effect of normalizing consumers' perceptions of what a comic should cost:
It’s also fulfilled the prophesy that programs like Humble Bundle, which led the way in dumping piles of digital issues on the market for ridiculous prices, would eventually erode the perception of value for non-current material, permanently lowering the ceiling for profit margins on publisher back catalog in exchange for the sugar-high of short term revenue.
Role-playing games have also been sold in Humble Bundles. Salkowitz points out that there are benefits to this kind of deep discounts:
It’s a huge plus for consumers to be able to catch up on storylines or track down old favorites in digital format without breaking the bank. It’s good for publishers, who can use promotional sales to generate attention for characters poised for a big moment on screen or in a featured upcoming series. It’s good for creators, who can expose new (and old) fans to their previous work without driving them to the back issue bins.
The concern is that consumers will not buy new products at full price. After all, today's comic book is tomorrow's deep-discounted back issue. Will fans stop buying?

Digital and Tabletop RPGs

PDFs of tabletop role-playing game rules and adventures share a lot of similarities with comics. They have a finite lifespan but are still accessible later, and as future editions of RPGs are released, the back catalog loses its appeal at brick-and-mortar outlets, often ending up deep discounted to clear shelf space. The digital space is where a back catalog can thrive.

It's also where a lot of innovation takes place, unrestrained by production and distribution barriers that would normally prohibit a creator from launching a product. OneBookShelf's (OBS) consolidation of digital gaming products (DriveThruRPG absorbed its rival, RPGNow, back in 2006 and now manages DM's Guild) draws a parallel with the dominance Amazon's Comixology in digital comics. So far, DriveThruRPG has resisted deep discounting on the scale of Comixology, perhaps because the price point is set by the creator, not by OBS.

OBS' management of its channels provides a path forward for companies like Wizards of the Coast, who shifted from removing all of its PDFs online in 2009 to partnering with OBS to create a DM's Guild in which creators can leverage WOTC's own content to create new products. This shift was likely influenced by the decline of bookstores, a major channel for RPG distributors.

By all accounts, the digital market for comics (and books in general) has stabilized. Reference books in particular lend themselves to digital distribution. Given that tabletop gaming books are often purchased for reference during play, they can be even more useful in electronic format when indexed and searchable. The same can't be said for 3D models however.

Digital and Miniatures

Miniatures have slowly fallen out of favor among companies like WOTC, who once offered pre-painted randomized miniatures, only to abandon the product after the Great Recession in 2008 made the price of production and shipping unfeasible. WizKids picked up the slack, acting as a consolidator for multiple companies' plastic miniature lines, WOTC included.

WOTC has paid careful attention to 3D products on sites like Shapeways, a platform WOTC's parent company Hasbro has an existing agreement with. With a few exceptions, most D&D models are free to download and print. Games Workshop, on the other hand, went after a creator on Thingiverse for creating a Warhammer-style figure back in 2012.

Cool Mini or Not (CMON) has adopted a Minimum Advertised Pricing Policy (MAPP) for advertising of its games:
CMON believes that by unilaterally imposing restrictions on the minimum prices advertised by our distribution and retail partners, we can reduce counterfeiting and enhance our customer’s perceived value of the CMON brand, and that serves the best interests of our consumers, retailers, and distributors.
CMON's MAPP focuses primarily on advertising vs. the actual price of the product (in CMON's case, products cannot be advertised lower than 15% of the standard retail price). A MAPP's attempt to "reduce counterfeiting" may not be comprehensive enough. Six years later, any concerns about keeping counterfeit and copycat products off digital shelves are quickly dispelled by browsing Thingiverse.

There are miniatures for just about every game imaginable on Thingiverse and Shapeways. Warhammer-compatible models are ubiquitous on Thingiverse (over 1,700 models). Don't like the Robotech miniatures from Palladium's recent Kickstarter? You can print them yourself. Missing a ship for X-Wing? Print it yourself. Fans who have a 3D printer can even make their own terrain with OpenLock, a rival to DwavenForge's terrain.

The hobby market will likely shift its strategy from providing printed products to providing high-quality digital files (indexed PDFs, high-quality 3D models) that can't be purchased for free online. One thing's for sure: if Thingiverse's catalog is any indication, the price of digital products in the 3D space have already been socialized well below digital comics' $0.99.
 
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Michael Tresca

Michael Tresca

I know I save money wherever I can. I only buy rpgs at discount on Amazon, and the occasional POD product from Drivethrurpg, and I stopped getting monthly comics to instead wait for months to get the trade at a discount on amazon. Where I was spending 200 dollars a month on comics It's down to 80 because of this tactic. I don't think I'd do digital comics unless the price was super cheap and I could find a quality product to read them on at a decent price. The price for a decent tablet is too expensive for my budget right now, and there are too many things I need to buy for an upcoming move and cool stuff I "need" like an Xbox one so my brother an I can play halo together.
 

Kobold Boots

Banned
Banned
The shift from retail of product to retail of services has already started to occur. All that you're going to see happen is the floor space for product in stores will shift to floor space for tables and a place to play with premium services like food.

While this will change the dynamic of most gaming stores and increase the barrier to entry in terms of store renovation and rent costs, it will result in folks having a nicer place to play than most stores are supporting now. Only reasons I game at stores is to recruit simply because I'm not fond of sitting in chairs that aren't comfortable surrounded by a bunch of other folks that are uncomfortable.

Can't remember the last time I bought something in a store, except for groceries. Unfortunately that's true of gaming stores as well. With online reviews and such widely available and at a reasonably high quality for anything I want to look at, there's no reason to walk in and touch it before buying anymore.
 

pming

Legend
Hiya!

I'm going to be deliberately vague here so as to not get "in trouble". I don't think that dead-tree comics (and comics in general) lowered sales is primarily because of "digital availability". If you follow comics at all, and watch a few of the better comic-book reviewer channels on YouTube...it is painfully obvious that the sudden decline of, at least Marvel, comics has been because of...hmmm...how to put this... "a certain style of writing and story-telling" that has been in full swing since about 2015/2016. Some love this new take on writing comic's, but the old fans...the "collectors", so to speak... are, by and large, not happy. When you start to get pro-comic writers/artists coming out and saying "This is whats wrong", people should listen to them. But the top-dogs at Marvel and DC, for whatever reason, have decided to not only stay the course on their "new reboots", but some actually attack FANS for saying "We don't want this...we want more of what we had"? Well, you know something is not only wrong, but SERIOUSLY wrong with the comic book industry right now.

If I'm too vague, here's two decent Youtube guys I watch to get my comic info:

(Actually, first... TRIGGER WARNING! ...for those who, uh, need such things I guess...)

https://www.youtube.com/channel/UCrlzSqLSGj8GIOeT5jrQsJA

https://www.youtube.com/channel/UCWLmf0zALibUALCZoaDg2jw

^_^

Paul L. Ming
 

Ath-kethin

Elder Thing
I absolutely 100% empathize with those who buy stuff at bargain prices and eschew the higer prices at physical stores. I did the same for a long time, and I still do in some cases.

But I buy game and comic stuff from my local comic and game shops, and I do it to support those shops. The comic/game store closest to me is closing at the end of this month after 15 years, and I think that sucks - I have a 4 year old kid who loves going there to see the people and look at the comics and miniatures and RPG books and the board games. I want shops like that to be around when he's old enough to actually play in their events. There is no experience like that in the world.

So I buy him his monthly comic book we have the store hold for him, and while I buy the collections instead of monthly issues for my books (they store better and look better on a shelf), I buy them from the local store. My experiences as a gamer and as a comic fan have been fantastic, and I want him to have those same kids of opportunities. That doesn't happen at the Amazon Slave Pen, it happens at the local shops.

I don't like spending $30 on a book I could buy online for $18 any more than anybody else does. But I like the idea of my kid growing up in a world with no comic or game shops a whole lot less.
 
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EthanSental

Legend
Supporter
Excellent article in that I'm a life long comic collector as well. I've debated comics in a digital format but just can't get used to reading comics on sites like comixology with guided view technology compared to paper version. New comics (every Wednesday) have the same digital copy price as the physical copy. Not sure what the time frame is before digital price drops but I'd guess it's to make sure comic shop owners aren't competitively priced out for new comics. I can't pay 2.99 or 3.99 for a digital comic on Wednesday when I know I can buy the physical copy for the same price and have something in hand (or bag/board/box) that has a slight uptick in value 30 years from now.

As as far as what PM mentioned, Disney/marvel pushed a certain diversity benchmark of having half of their comics be gender/ethnicity/sexual preference to be more inclusive but it didn't go over so well and sales tanked on most of the affected titles. Maybe it was bad writing, maybe the buyers of said titles preferred their old heroes (like a green hulk/ banner, and not an Asian teenager hulk/cho or she-hulk) as the protagonist or a combo of a bunch of things as poor writing or perceived forced change. Either way, marvel realized it and has since started going back to the characters the majority of the regular fan base wants as the changed characters didn't bring in enough new readers to replace the die hardship and sales suffered.
 

pming

Legend
Hiya!

I'm going to be deliberately vague here so as to not get "in trouble". I don't think that dead-tree comics (and comics in general) lowered sales is primarily because of "digital availability". If you follow comics at all, and watch a few of the better comic-book reviewer channels on YouTube...it is painfully obvious that the sudden decline of, at least Marvel, comics has been because of...hmmm...how to put this... "a certain style of writing and story-telling" that has been in full swing since about 2015/2016. Some love this new take on writing comic's, but the old fans...the "collectors", so to speak... are, by and large, not happy. When you start to get pro-comic writers/artists coming out and saying "This is whats wrong", people should listen to them. But the top-dogs at Marvel and DC, for whatever reason, have decided to not only stay the course on their "new reboots", but some actually attack FANS for saying "We don't want this...we want more of what we had"? Well, you know something is not only wrong, but SERIOUSLY wrong with the comic book industry right now.

If I'm too vague, here's two decent Youtube guys I watch to get my comic info:

(Actually, first... TRIGGER WARNING! ...for those who, uh, need such things I guess...)

https://www.youtube.com/channel/UCrlzSqLSGj8GIOeT5jrQsJA

https://www.youtube.com/channel/UCWLmf0zALibUALCZoaDg2jw

^_^

Paul L. Ming
 

Kobold Boots

Banned
Banned
I absolutely 100% empathize with those who buy stuff at bargain prices and eschew the higer prices at physical stores. I did the same for a long time, and I still do in some cases.

But I buy game and comic stuff from my local comic and game shops, and I do it to support those shops. The comic/game store closest to me is closing at the end of this month after 15 years, and I think that sucks - I have a 4 year old kid who loves going there to see the people and look at the comics and miniatures and RPG books and the board games. I want shops like that to be around when he's old enough to actually play in their events. There is no experience like that in the world.

So I buy him his monthly comic book we have the store hold for him, and while I buy the collections instead of monthly issues for my books (they store better and look better on a shelf), I buy them from the local store. My experiences as a gamer and as a comic fan have been fantastic, and I want him to have those same kids of opportunities. That doesn't happen at the Amazon Slave Pen, it happens at the local shops.

I don't like spending $30 on a book I could buy online for $18 any more than anybody else does. But I like the idea of my kid grouping up in a world with no comic or game shops a whole lot less.

The sad thing is that economic pressure will eventually win and stores that don't diversify will close regardless of the number of folks that are interested in and capable of doing this.
I'd also love to find a store anywhere that I'd be happy allowing my son to frequent regularly. While gaming has become a social norm and mainstream, good stores with good folks are rare in my experience.

Finding the unicorn may change my opinion to me more like yours for that specific case.
 

As a GM, I increasingly find that PDFs have more utility than printed books. They are easier to search and access. Creating adventures is made easier when you can just cut and paste monster stats. I prefer to have both printed books and PDFs. I enjoy books because they are real, have greater long-term value, and are more fun to read.

But the cost differential is big. I sponsored the Zweihander Kickstarter a couple of years ago and got the book and PDF for $50. The last I looked the PDF was going for $5.

I don't see how a company can survive selling their work product for so little. Not if they are going to maintain high production values. Unfortunately, that is what you see now, a proliferation of companies with pretty low production values selling all kinds of total crap. At the same time, tactics by other companies to not produce PDFs aren't exactly giving the customer what they want.

I trust in the market to eventually sort this out. The solution is still developing. DnDBeyond provides digital content but in a format that is not easily shared across the internet by freeloaders. That protects WoTC and allows them to make a decent profit while providing cool content at a reasonable cost.

Based on trends facing many mom and pop retailers, the outlook for brick and mortar game stores is bleak.

For me, DnDBeyond is a great product and gives me the best of all worlds -- functionality, digital content that is searchable, and the ability to create adventures on the fly. My only criticism is that it is limited to 5e DnD.

Perhaps a digital company could offer a platform similar to DnDBeyond but that is customizable to a broad range of RPGs.
 
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Jer

Legend
Supporter
The comparison to comics isn't quite so apt. A big part of the problem in the comics market is the aging demographic of comics readers - the structure of the retail market has tuned itself to old guys who have been reading books for decades and it's actually hard for younger people to get the material. And when they do it's just not cost effective - $5 for one 22 page installment of a story that will come out monthly for 6 months is a ridiculous ask for kids these days which is why graphic novels sell so much better to that audience and why Scholastic's graphic novel program is doing better than most of the established comics companies at this point as far as sales go - there's nothing like the audience at school book fairs to sell those Amulet and Bone graphic novels. (This is also part of DC and Marvel's recent problems, as their retail partners had told them to "reach out to new audiences" but neither the retail partners nor DC/Marvel wanted to put any money into actually reaching out to new audiences, so all they did was drive away old guys who weren't interested in material that wasn't really designed to appeal to them. I won't be surprised at all to see the traditional comic book store basically dead within the next two decades if someone can't crack the code to get new readers into the door).

Gaming was in this trap, but Actual Play casts seems to have brought in a much younger demographic. Games are an easier "ask" than comics - you'll play a board game or a card game many times where you might read a comic once - and so even though they're more expensive per unit, as a measure of "dollars per unit of entertainment" games have a high perceived value. And games are widely available on Amazon in non-digital formats, so people will buy them - especially if they have components (so board and card games are going to be fine).

As for RPGs - I don't think there will be problems until Amazon starts selling Kindle editions of games. Right now you have to go to a relatively niche website like drivethrurpg to find digital RPGs. When Amazon starts to sell Kindle editions, that's when I suspect we'll start seeing the "death spiral" hit the RPG market when it comes to the move to digital.
 

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