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D&D: big as it ever was? (Forked Thread: So...How are Sales of 4E Product?)
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<blockquote data-quote="malraux" data-source="post: 4539172" data-attributes="member: 24352"><p>I don't think so. Imagine the worst case with DDI, that it loses all money sunk into it and never recoups anything. At which point, the employees associated with it are fired, the extra IT infrastructure is sold off for basically nothing, and the WotC profitability is brought down slightly, with only a small fraction of the budget going into DDI. Meanwhile, all other lines are profitable.</p><p></p><p>From the stories regarding TSR when WotC acquired the company, TSR had done far worse than just try out a new revenue stream, they had sunk a huge amount of their budget into stuff dragon dice and CCGs and buck rodgers board games. Even worse, rather than just admitting the mistake, taking the loss and moving on, they were paying to warehouse worthless junk.</p><p></p><p>Admittedly WotC does a lot more than just DnD: M:tG and other CCGs, Avalon Hill, etc, but WotC has a pretty good track record of keeping those lines profitable, and as importantly, knowing when to cut losses. The change in DDM is a good example. To make WotC compare to TSR, WotC would have to suddenly drop the cost of DDM to less than profitability, then even after they continued to decline in sales, keep production up and just start storing the excess.</p><p></p><p>In short, system bad business decisions look a lot different from a single failed revenue stream.</p></blockquote><p></p>
[QUOTE="malraux, post: 4539172, member: 24352"] I don't think so. Imagine the worst case with DDI, that it loses all money sunk into it and never recoups anything. At which point, the employees associated with it are fired, the extra IT infrastructure is sold off for basically nothing, and the WotC profitability is brought down slightly, with only a small fraction of the budget going into DDI. Meanwhile, all other lines are profitable. From the stories regarding TSR when WotC acquired the company, TSR had done far worse than just try out a new revenue stream, they had sunk a huge amount of their budget into stuff dragon dice and CCGs and buck rodgers board games. Even worse, rather than just admitting the mistake, taking the loss and moving on, they were paying to warehouse worthless junk. Admittedly WotC does a lot more than just DnD: M:tG and other CCGs, Avalon Hill, etc, but WotC has a pretty good track record of keeping those lines profitable, and as importantly, knowing when to cut losses. The change in DDM is a good example. To make WotC compare to TSR, WotC would have to suddenly drop the cost of DDM to less than profitability, then even after they continued to decline in sales, keep production up and just start storing the excess. In short, system bad business decisions look a lot different from a single failed revenue stream. [/QUOTE]
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D&D: big as it ever was? (Forked Thread: So...How are Sales of 4E Product?)
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