TheLe said:
A high licensing cost ($1000+) will easily eliminate 50% or more of the publishers out there.
I don't consider $1000 "high," just as a round figure, and completely out of context, for any startup business.
I can say with some confidence, for example, that $1000 would NOT have served as a signifcant toll-gate to slow down some of the more prominent sh*t-shovelers of 3rd edition.
Anybody who has the budget to actually go to print can probably afford that fee, and can probably recoup it fairly quickly,
regardless of the quality of their work. At least, they could have then-- this is now. The market might be more discerning this time around.
However, a $1000 fee is crippling to a PDF publisher. That fee will likely wipe out a good many PDF publishers of excellent quality.
A $10,000 licensing fee would probably restrict publishing to the half dozen or so prominent d20 publishers at the top of your mind right now. But the thing is, in my opinion, publishers who can afford a fee that high really don't need to prove themselves, for the most part.
There is some discreet point at which the fee is high enough to weed out so many publishers that WOTC would be far better served to just make a judgement call on who they want to publish, and who they don't.