Can the Geek Crate Model Survive?

The crate model -- in which subscribers pay for a blind-box monthly delivery service of theme-related items -- has undergone some growing pains recently. Two data points indicate that the industry is maturing, but not without some rough patches.

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[h=3]Geek Crate Struggles[/h]I've extensively covered Mythoard, which nearly went extinct before it was resurrected by an investor group. By all accounts Mythoard, and other tabletop-friendly services like Dungeon Crate and RPG Crate are going strong. Private Press just launched a mini-themed crate called, fittingly enough, MiniCrate. But that can't be said of the crate service that started it all, Loot Crate.
[h=3]Too Much Loot, Too Fast[/h]Loot Crate's rise and stumble are documented by Paresh Dave at the LATimes:

Between 2012 and 2014, Loot Crate amassed 200,000 subscribers to its $20 monthly shipments of apparel and collectibles related to video games, comics and pop culture (think Birchbox for the Comic-Con set). It then launched packages aimed at pet owners, Harry Potter readers, wrestling fans and more. Subscriptions increased to 650,000, pushing sales to $165 million in 2016, up almost 40% compared with the previous year. Over 18 months, the staff nearly doubled to 280.

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For a while, things were great. Loot Crate expanded to anime, and gaming, and pets. But then reality set in:

Employees went home earlier and casual conversation on the company’s internal chat app Slack declined. Snack shelves weren’t stocked as often, or perhaps with all the new hires the food just ran out sooner. Bathrooms grew dirty. Bonuses arrived as stock, not cash. Negative reviews on jobs site Glassdoor piled up. A promised new office to replace the company’s Lincoln Heights space remains indefinitely delayed. Adding bodies was treated as a solution to deep problems, current and former employees say.

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Then layoffs happened, near-fisticuffs between senior leaders, and lawsuits. Rob Salkowitz explained Loot Crate's challenges on ICv2:

Loot Crate is in a tricky position. It, or any company that takes over as a leader in the space, will always have a precarious market position because the gift box business seems difficult to protect from competition, particularly when serving a market of fickle, discriminating fans and collectors rather than ordinary consumers. Loot Crate moved first and fast in the geek culture space, signing up a bunch of exclusives with top brands and building out its subscription list, but it wasn’t long before others started moving in with more specialized offerings and strong brands of their own.

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Loot Crate seems to be moving to a new phase of growth:

Loot Crate’s last quarter was profitable. And recently, the start-up named veteran media executive Ynon Kreiz chairman of its board of directors...Mark Suster, managing partner of Upfront Ventures, said Loot Crate suffered “self-inflicted bumps in the road,” but that “the wheels weren’t falling off” because Davis has begun making more responsible decisions.

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Although one of the biggest geek-interest crates has stumbled, it wasn't enough to put off another gaming behemoth that just happens to own the rights to Dungeons & Dragons.
[h=3]Hasbro Weighs In[/h]Hasbro launched its own gaming subscription service in June 2017:

Hasbro Gaming Crate caters to multiple types of gamers with two themed crates, each with three games, priced at $49.99 plus shipping per crate, charged automatically when the crate ships. The Party Crate contains games with content geared toward college students, young adults, and parents who are looking to enjoy "adults-only" game nights. The Family Crate offers games designed to be played together and enjoyed equally by kids and adults.

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The crates are shipped quarterly. Hasbro created a team dedicated to managing this new service:

Hasbro built a new separate team within the broader Hasbro Gaming segment that will focus exclusively on the Hasbro Gaming Crate service. The idea is that all the games that will be shipped will be new—so consumers that order the crate won't be getting boxes of Candy Land and Jenga shipped to their homes.

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Jonathan Berkowitz, senior vice president of marketing for Hasbro Gaming, told Fortune:

"Social gaming is exciting. It is fun to play and fun to watch," Berkowitz said. But he added that while Hasbro is finding inspiration online, it doesn't mean the company must add digital functionality to make their games a hit. In fact, the new social games feature no digital bells and whistles—they are more classic forms of play. "People play face-to-face games to connect [with each other]," Berkowitz added. "If you focus on making a great game that connects people, you will win."

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With his reference to "social gaming," Berkowitz could just as easily be talking about one of Hasbro's other classic forms of play -- Dungeons & Dragons. With D&D's recent surge in popularity, the success of other tabletop role-playing game crates, and Hasbro's willingness to invest in "social games" -- of which D&D is certainly a part -- an official D&D-branded crate may yet be a possibility.

Mike "Talien" Tresca is a freelance game columnist, author, communicator, and a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to http://amazon.com. You can follow him at Patreon.

 

[AriochQ]

My wife got my daughter and I Loot Crate when it first started, I believe it was $20/month. It was probably worth it at that price point, just based on the curiosity factor and we usually split the stuff between us (I am the gamer, she is the superhero fan). When they raised the price, we bailed. I would never in a million years pay $49 for such a product. If I am spending any more than $20, I would rather know what I am getting for my money.

I did have one other interaction with Loot Crate after I cancelled. They ran a Loot Wear month where they had a 5e hoodie. I jumped on that and signed up for one month, I ended up getting a different item of clothing. About 4 months after that, I actually received the 5e hoodie. It must have been during the upheavals at the company.

 

[Ralif Redhammer]

Same. I've got enough tchotchkes and doodads already.

Well I'm glad I am not the only one who sees these things largely as clutter-creators.

 

[1d4damage]

I'm currently subscribed to Model Box and Monster Box and I find them to be much more universally useful than anything I got from Loot Crate. As a D&D DM there is nothing disappointing about getting new minis, I always have a use for them. Moster Box is a new one that I found through Twitter, each month you get a new 75mm monster. They sculpt them themselves and you can vote on what is sculpted each month. So far it's working out real well.

 

[MichaelSomething]

Honestly I don't understand it at all. Spending money (whatever small) to get totally random and useless stuff IMHO is the abyssal peak of consumerism. At least I hope it funded someone's research in psychology/sociology.

I imagine it's like getting a gift. People do like good surprises.

Sent from my VS990 using EN World mobile app

 

[MNblockhead]

I'm currently subscribed to Model Box and Monster Box and I find them to be much more universally useful than anything I got from Loot Crate. As a D&D DM there is nothing disappointing about getting new minis, I always have a use for them. Moster Box is a new one that I found through Twitter, each month you get a new 75mm monster. They sculpt them themselves and you can vote on what is sculpted each month. So far it's working out real well.

Okay, I have to check these out. I've never been interested in the geek-crate services I've looked into, but wished there was one for miniatures. If there was one dedicated to terrain and minis, I would certainly consider it if the price was right.

[EDIT after Looking at Model and Monster Box]

Model Box looks like it could be worth it if I were more active in terrain creation and mini painting. For someone who is crafty, I think it makes sense. You get a surprise projects and terrain additions. New paints to try, etc. May try something you would not think to buy. But I haven't had the time to even touch my backlog of Bones minis. I'm more interested in pre-created terrain. I'll keep my eye on this though, and certainly recommend to others. I do wish, however, that they would give more info on shipping costs. Seeing prices in British pounds, I'm assuming the shipping cost to the USA may make this cost prohibitive.

Monster Box is a step in the right direction. But $32 for a single, unpainted, 3D printed mini is more than I want to spend. At that price, I would rather buy at the game store or eBay. For those with 3D printers, however, I think that the subscriptions for the OBJ and STL files may be worth it.

I really hope that Hasbro does offer a D&D box. They could include some printed adventures, pre-painted minis, battlemaps, and some D&D swag I'm always jealous about when I see in the hands of people who can make it to gaming conventions.

 

[MNblockhead]

Okay...so, I'm still fairly skeptical about crate services, but I'm going to give Privateer Press's MiniCrate a shot. While 16.99 is more than I would normally spend for a single resin/plastic mini. But I like the idea that they destroy the mold after each one. So you can build up a nice collection of more unique miniatures. The first one, Swamp Siren, looks awesome. Thinking about going for the VIP, bringing down the price per mini by half a buck. Also they throw in a bonus mini, so it comes to $14.14 per mini. Not thrilled with the first bonus mini, but still pay less per mini when paying six months at a time. I figure I'll need to give it six months to fairly determine if the mini are consistently interesting and worth continuing my subscription.

The Goodman Games crate also looks intereting, but I have such a back log of adventure material. I don't know that I would get use out of the material. Also, generally, I want to know something about an adventure or campaign setting book before buying it. Not sure I'd like getting random material. But I'll keep and eye out for when it goes live and perhaps pay for the first month or two. They do have the rights to reprint many of the classic modules for 5e—getting some surprise modules from my past that are 5e ready could be a fun monthly gift.

 

[Grainger]

They're the ultimate example of wasteful consumerism. Pay to have a lot of stuff you don't want delivered to your door, then kid yourself you actually want what they sent you.