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<blockquote data-quote="GM Dave" data-source="post: 5876105" data-attributes="member: 6687992"><p>Why a threat?</p><p></p><p>Paizo is not built on the same model as WotC.</p><p></p><p>If WotC does not produce product then WotC stops as an entity (at least the RPG DnD line though their MtG line will last for several years by appearances).</p><p></p><p>Paizo makes a large amount of money by being the 'go to' stop for sales on the internet.</p><p></p><p>If 5e fails then they make a small amount of money.</p><p></p><p>If 5e succeeds then they make more money.</p><p></p><p>Paizo is hedged by selling WotC product on their site to do well whether 5e is a success or failure.</p><p></p><p>Paizo is also hedged against the changes of many different products and will make profit on all the auxiliary items that are purchased (dice, miniatures, maps, and 3rd party products).</p><p></p><p>Paizo sells Pathfinder because it interests the heads of the company to do it but not because they would cease to make sales if they didn't.</p><p></p><p>That makes a very different business model.</p><p></p><p>Pathfinder and Adventure Paths attract people to the site (making them more advertising tools).</p><p></p><p>This success of attraction has allowed them to pick up old material that was from companies going out of business and selling it for profit. This has allowed them to now branch into novel sales (reprints of older material and new material drawn from their world).</p><p></p><p>WotC has DnD as a secondary sales item (primary are book sales in their settings and it used to be some online games like Neverwinter Nights and Baldur's gate). People find DnD RPG usually second while Paizo usually is the reverse with their Pathfinder products attracting people to purchase the other products.</p></blockquote><p></p>
[QUOTE="GM Dave, post: 5876105, member: 6687992"] Why a threat? Paizo is not built on the same model as WotC. If WotC does not produce product then WotC stops as an entity (at least the RPG DnD line though their MtG line will last for several years by appearances). Paizo makes a large amount of money by being the 'go to' stop for sales on the internet. If 5e fails then they make a small amount of money. If 5e succeeds then they make more money. Paizo is hedged by selling WotC product on their site to do well whether 5e is a success or failure. Paizo is also hedged against the changes of many different products and will make profit on all the auxiliary items that are purchased (dice, miniatures, maps, and 3rd party products). Paizo sells Pathfinder because it interests the heads of the company to do it but not because they would cease to make sales if they didn't. That makes a very different business model. Pathfinder and Adventure Paths attract people to the site (making them more advertising tools). This success of attraction has allowed them to pick up old material that was from companies going out of business and selling it for profit. This has allowed them to now branch into novel sales (reprints of older material and new material drawn from their world). WotC has DnD as a secondary sales item (primary are book sales in their settings and it used to be some online games like Neverwinter Nights and Baldur's gate). People find DnD RPG usually second while Paizo usually is the reverse with their Pathfinder products attracting people to purchase the other products. [/QUOTE]
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