Profit warning hits Games Workshop

[jcfiala]

GW seems to have a policy of "Screw the guys who have played for 15 years, lets get the 12 year olds who's parents will buy them stuff so they can lose interest in 2 weeks."

Currently I have been playing WFB for 13 years and 40K for...15 years. I have some pretty massive armies. I don't spend nearly as much on it as I used to do. I can make my own scenery that is better than the stuff GW sells for a fraction of the price.

I'm not trying to be annoying here - but doesn't that mean that you're pretty not a customer of the company anymore, even though you do play their game?

I didn't realize they were public either. Maybe I should see about picking up some shares, too.

 

[AegisEversoaring]

I

er, i havent heard much companing about the paint drying out since they changed the 'pots' last year

I haven't bought any of their paint recently, but a tip a friend gave me was to put a few drops of dishwashing liquid into a paint pot, then shake it vigorously. It worked great for the paint I bought 4-5 years ago.

Aegis

 

[NewJeffCT]

GW prices too expensive for you? I tend to agree. I rarely buy GW product in the stores anymore (exception: I did buy a Bloodletter champ today, but I intend to paint him up and sell him on E-bay, just to see how good a painter I really am...). These days, most GW I buy is off the internet. I've bought bulk packs where each figure came in at around $1.50 per! As good as historicals (for the most part). You just have to be patient, dedicated, and wise enough to know when to let something go...

Damon.

If you want to sell on eBay, the key is taking good pictures more than the actual paint job... granted, if the paint job sucks, then Herb Ritts couldn't make it look good.

 

[Twowolves]

GW seems to have a policy of "Screw the guys who have played for 15 years, lets get the 12 year olds who's parents will buy them stuff so they can lose interest in 2 weeks."

I knew a guy once that worked for a game wholesaler, and he told me that GW's headquarters flat out said "go for the 13yr olds". They did market research that said they should release (or re-release) a game every 18 months, because that was the "attention span" of new mid-teen gamers. They target the disposable income of teens (or rather, the teen's parents) for about a year, then dump that line for something new once the kids outgrow whatever their latest release was. As for the 15 year veterans, they figure they have them forever, and just milk that market with new editions of 40k/WFB, or just new castings of the same old minis. Gorkamorka, Mordheim, Battlefleet Gothic, etc etc, all ran on the "fire and forget" marketing ideal.

That plus the minis are outrageously expensive. Even 8 years ago, I only bought figures at cons or online, for no less than 30% off. New castings of old figures I have had for years sell for almost twice the list price. I jumped off that bandwagon years ago, and have never looked back.

Twowolves Howling

 

[S'mon]

I was grinning broadly until I read Turjan's addendum.

I'll never forgive GW, never, you hear me... *shakes fist at the uncaring stars*

 

[S'mon]

Maybe people finally realize that $3 for a tiny jar of paint that's designed to dry up after a few months isn't a good deal.

Hm - I noticed this. The GW paints I bought decades ago before they went EEEVIL are mostly still good, but the red paint I bought in 2001 was totally dried up when I went to paint minis last month. Damn you GW, damn you all to Hell.

 

[S'mon]

Being based in the UK is a big reason for the pricing. It makes a huge difference.

I can get beautiful prepainted minis from (UK firm) em4 miniatures (in USA distributed via Crystal Caste) for about £2 each, or unpainted for £1. GW are still insanely expensive if you buy in UK. Maybe a better comparison might be Mongoose, UK-based and say what you like about their typos, their products don't cost noticeably more than US companies' ones.

 

[Talvisota]

Their marketing may sound like it is straight from Satan, but let's not forget that they are a public company, so therefore their goals are to enrich shareholders first and foremost. Attracting new gamers regularly at that age is far more important than stroking the feelings of 10+ year fans.

Most hobbyists realize their hobby interests in their teens and stick with them. (Obviously not all of us, but the majority.) How many polls have we seen on these boards reinforcing this concept? GW is trying to increase their long-term fan base, and I can't blame them for it.

Ever wonder why old men are grumpy? "It just ain't like it used to be!" I'd love to have a dime for every time I have heard or read an old gamer lay out that sentiment. And boy am I guilty of it, too.

But pricing is a major issue, of course. They can't raise them so high as to alienate customers; that is suicide. However, the currency and metals markets are forcing some of the volatility, just how much of it I don't know.

 

[Kanegrundar]

I have played, owned, and enjoyed many GW games. However, I despise this company and hope that they continue to lose money until they start to take care of their fans better. After several horrible experiences with their mail order department, putting up with constant updates to systems, discontinuing games without any word, and the skyrocketing prices for figs that are sub-par compared to other companies like Reaper, Privateer, and Rackam (these guys may be just as expensive, but their quality is unbelievable). They have lot sight of why they have a successful company, and they deserve to fail until they get back to what made them big in the first place: pleasing the fans.

Kane

 

[JVisgaitis]

GW is trying to increase their long-term fan base, and I can't blame them for it.

Your dead wrong. GW's business model is set to recycle players every 4 years. I used to know a lot of people at the Studio in England who told me that this is how their marketing strategy is planned. Do I blame them for wanting to make money? No. Am I pissed that their prices are the most inflated thing in the industry? Hell yeah.

Consider this. A unit of plastic miniatures costs them around $2,000 in tooling costs. The sculptors are on the payroll and I'm not sure what they get paid. Let's say $2,000 for a human sized regiment which is reasonable. Once the initial tooling and sculpting is complete, that box set costs 5 cents to make. Probably less since they stopped shrink wrapping, and probably less on sculpting since they usually sculpt one body and supply 2 different variations of it. The plastics started at $19.99 when they were first introduced. Now they are at $40. That's double and to me is just ridiculous.