[OT] WotC loses Pokemon license

[frankthedm]

Why is it that everytime some sort of bad news comes out people predict/insinuate the demise of WoTC. Afterall, while Pokemon may have had Revenues of 40 million - what was the profit on the line???? That is the number that we should focus on.

Also, based off of the various discussions that the lawyers on the board have had, it would be next to impossible for Hasbro to put the SRD genie back into the bottle - much to the betterment of the entire hobby.

I have been saying this for a while now. It really seems to me hasbro has been saying to wotc "profits or pink slips."

Wotc had to kill chainmail which was doing ok for a first year nitch market game [rather than the NEXT BIG THING], is realeasing a revised edition of d&d MUCH sooner than nessasary [i really do suspect it is more because core rulebook sales are slumping rather than NEEDING the update, but that is just me. i am a paranoid person at times].

Hasbro will not likely be happy with nitch market profits.

 

[Samothdm]

Licenses

I think part of the problem is that WotC owns so many licenses and those licenses aren't cheap:

1) Pokemon (well, I guess not any more)
2) MLB
3) NHL
4) NBA
5) Star Wars
6) Harry Potter
7) Wheel of Time
8) Call of Cthulhu
9) Now the Simpsons.

In the past they also had CCGs based on Looney Tunes, WCW, X-Men, and a few more, I think.

On the other hand, I can only think of two games they have based on licenses that they themselves own:
1) Magic
2) D&D

I would imagine that while Pokemon sells more than Magic, the profit margin is probably a lot, lot less.

I would actually think that "losing" the Pokemon license was probably a strategic company decision that, while it will cost jobs in the short run, will probably help toward making WotC more profitable in the long run. That's all just a complete guess, though.

 

[Utrecht]

I have been saying this for a while now. It really seems to me hasbro has been saying to wotc "profits or pink slips."

Wotc had to kill chainmail which was doing ok for a first year nitch market game [rather than the NEXT BIG THING], is realeasing a revised edition of d&d MUCH sooner than nessasary [i really do suspect it is more because core rulebook sales are slumping rather than NEEDING the update, but that is just me. i am a paranoid person at times].

Hasbro will not likely be happy with nitch market profits.

I would certainly agree with you that Hasbro the brand name has little tolerance for niche products. But it appears that Hasbro is using WotC and Avalon Hill in much the same ways that Hollywood film houses use "indie" production houses - as a way to satisfy a markets without diluting thier brand image.

Afterall, it all comes down to profits. If D&D has a 30% profit margin (no idea what it is) but normal HGasbro has only 15%, it makes sense to increase D&D's market space. (now granted another way of keeping high profit margins is to minimize expenses and the single largest expense is personell..... But I just don't see it yet.