Another RPG company with financial difficulties

Fiery James said:
My guess (based on many many conversations over the past year) is that most game companies are 1 or 2 flops away from being completely out of business.

Seriously -- these are companies that have 8 or more releases planned this year, and if just 1 or 2 fail, they're done.

Things are very tight for everyone right now, so it's time for everyone to play very very carefully and use your head rather than your heart for the next while.

:)

- James

Not entirely sure what that means.

I do know that the amount of releases really needs to slow down. I can barely keep up with it all.
 

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I don't know - and I've seen discussions where distributors give the blame right back to the RPG companies. With normal books, anything that doesn't sell is bought back by the publisher for a portion of the price, the books are then destroyed. RPG companies can't afford to do this, therefore the distributors are a lot more picky about moving the books.

Maybe a compromise, where the RPG companies honor the MSRP for a fixed amount of time. After that time expires, they will do buybacks but then sell the extra books on their web site or conventions at a much reduced price.

Its a messed up system, since the producers are really the only ones held to the MSRP.
 

barsoomcore said:
Which means what for the FLGS? Can they still get the books they need at prices they can afford if they have to go straight to the publishers? Is the industry moving towards 100% online sales?

I think one thing that will happen will be that we'll drop the L from the phrase FLGS. The days of a small hobby shop are over. Just like bookstores have to get bigger to compete with Amazon, so do hobby shops. I used to go to a place called Bridgetown Hobbies, but they didn't reliably have the product I wanted. So I've started going to a place called Rainy Day Games, because they have many more RPG products.

I think both stores and production companies are going to have to learn to distinguish between quality and crap. The OGL has flooded the market with poor quality games as every grown man in his mother's basement publishes his homegrown campaign. There are also plenty of good games, but you have to look, and when you can find a publisher that's reliable, you stick with them. Back when I played Fantasy d20, I bought nearly everything Monte Cook put out, because I loved his books. Now that I'm a HEROphile, I try to buy everything they put out. Because I know that Steve Long and his Round Table have reasonably exacting standards. They make mistakes in layout and art selection, but they support their product.

Steve Long posts in the HERO Forums almost every hour. He answers any rules question almost immediately after you post it. This is the man who built the most recent edition, and he's available free of charge to the public. I bet that company loyalty will play a larger role than ever in the future of gaming. Wired Magazine recently showed a study that the idea of brand loyalty is almost nonexistent in today's world. But I think in RPGs, with the high investment cost, it'll still be there.

I also think the rise of the internet has led to a slowing of RPGs. I'm not talking about Amazon and all that, I'm talking about the fans.

There was a time when we bought every product we saw because each module was our lone source of new material. Now, for any system, you can just hit up geocities.com/FANBOY and pull down his own campaign, many of which are quite good. HERO's got loads of fan support, and it's a small company/game. The d20 system has enough free prestige classes, spells and campaigns that there's no longer a need to buy anything.

And I think HERO's cutting down a bit for the same reason they always do - HERO is a rare game that is almost unique (to my knowledge) in that it needs no supplementary books. The entire rules are contained in the main book, and all the supplementary books do is offer ideas. You need to by extra books for D&D (Psionics, Epic Level, etc.), GURPS (Magic, Cybernetics, Vehicles), any many other systems. HERO as a company has always suffered because the entirety of the game is contained within one book, and any other purchase is extra. However, the business crew over at DoJ games, such as Darren Watts and Steve Long, have shown remarkable temarity and I have high hopes they'll weather the storm.
 

barsoomcore said:
Very astutely pointed out.

Are distributors shooting themselves in the foot? What could they do that would put more money (more reliably) into everyone's pockets? Or are they dinosaurs that eventually all the game companies are going to divert away from?

Which means what for the FLGS? Can they still get the books they need at prices they can afford if they have to go straight to the publishers? Is the industry moving towards 100% online sales?

These are pretty interesting questions, I think.

I doubt that anyone will bypass distributors in the next 20-30 years. Online sales are great, but online sales only benefit the well informed. Going to online sales only will dramatically decrease your overall audience and market share.

This is one reason why Amazon has not put Barnes and Noble out of business. I may be able to pay attention to a few authors I enjoy and buy their books online, but that means I am missing out on a whole load of other books because I canno remember every author and finding new ones are a joke on Amazon.

Also, direct sales are expensive. I ordered direct from Sovereign Press once. Two books cost me $100. I could have gotten them from my FLGS for 80 paying full retail!

Also, online will not be tax free forever. Right now, they have an unfair advantage over local retailers. Do not expect that to last even another decade.
 

barsoomcore said:
Which means what for the FLGS? Can they still get the books they need at prices they can afford if they have to go straight to the publishers? Is the industry moving towards 100% online sales?

What FLGS's need to do mainly is put the F back in FLGS. I've read too many stories from gamers on the net from all over about shop owners who run their business like its a hobby. Walking into a store and having no one to help you, having to put up with people who would be thrown out of any other business because of their hygene, having uninformed or clueless staff, or worse having staff deride something you ask about because its their favorite system to hate on. Or they like RPGs and look down on CCGs, or vice versa. All of these are unacceptable.

I have a good friend who manages a tire store and shop. He runs a successful business despite the 800 lb gorilla. That would be Wal-Mart. Wal-mart will always be cheaper than he is. There's nothing he can do about this, there's no way he can get his costs lower than theirs. But he manages to run a successful store.

He treats his customers well. He and his staff are very knowledgeable about tires, and can talk with you and figure out what you need. At wal-mart you don't really get that - you get a rack of tires and someone will slap them on. So his customers are loyal, because they get something for their money.

A FLGS needs to do the same. It needs to be run like a business first, careful attention paid to stock and what's moving, regular customers treated respectfully, and overall a nice place to come and shop. Room for gaming makes it even better. I wish I had a store like that around me. If I did, I might start paying full retail for books.
 

maddman75 said:
I don't know - and I've seen discussions where distributors give the blame right back to the RPG companies. With normal books, anything that doesn't sell is bought back by the publisher for a portion of the price, the books are then destroyed. RPG companies can't afford to do this, therefore the distributors are a lot more picky about moving the books.

Maybe a compromise, where the RPG companies honor the MSRP for a fixed amount of time. After that time expires, they will do buybacks but then sell the extra books on their web site or conventions at a much reduced price.

Its a messed up system, since the producers are really the only ones held to the MSRP.

That is another consideration. A lot of FLGS got screwed because of product that would not sell.
 

Fiery James said:
Things are very tight for everyone right now, so it's time for everyone to play very very carefully and use your head rather than your heart for the next while.

:)

- James

Yeah, but that's a tough road to walk.

If decisions are made solely based on sales forecasts rather than passion for the work - it shows, and such products sometimes may fail because of it. Granted, passion without business savvy is just as likely to fail, but I would think you need both for a successful product.

...Now let's talk about when we'll see Battlebox 2... ;)
 

BU: You seem to be suggesting that "bypassing distributors" is equal to "online sales". I'm not sure why you're doing that. Isn't it possible for game stores to buy direct from publishers and thus bypass distributors?

And of course, as has already been pointed out in this thread, the reason up to now that direct sales are expensive is because publishers aren't ALLOWED to discount their books (or else they'll be undercutting their distributors) -- so if distributors are no longer required, the publishers will be able to charge lower prices.
 

mm75: I wouldn't take for granted that book publishers can "afford" to take those losses on unsold books, either. Certainly the Canadian publishing industry is very heavily subsidised by the government and most of the smaller presses pretty much operate at a solid loss.

Publishing anything is not a good place to be right now. The whole system is creaky and undernourished and there's going to be significant changes in the way the business operates in the medium term. It's already changed a lot, but I think there's going to be rocky times ahead...
 

DaveMage said:
If decisions are made solely based on sales forecasts rather than passion for the work - it shows, and such products sometimes may fail because of it. Granted, passion without business savvy is just as likely to fail, but I would think you need both for a successful product.
REAL business savvy involves passion and understands that the best work always engages the imagination and the heart of those who produce it. "Using your head" means making smart decisions on what you can AFFORD to do, rather than being a mercenary and sending out stuff you think is crap but hope will sell.

But then, who doesn't want to be a mercenary? :D
 

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