WotC D&D Historian Ben Riggs says the OGL fiasco was Chris Cocks idea.

You pay a cut to sell your product at someone else's store, whether that store is a FLGS, Amazon, Roll20, or DnDBeyond. I don't see how WotC expecting a cut is problematic, and clearly the folks entering into these deals have concluded that it makes sense for them, as well. To a person, they seem delighted at the opportunity.

Buying, operating, and expanding DDB is not free, anymore than running a FLGS is free.
We don't know the number, but irnia entirely conceivable thar TPP margins on a D&D Beyond sale may be larger, due to logistics and distribution.
 

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This is not really like the OGL situation. That was, in effect, WotC trying to claim ownership over game rules to charge a licensing fee for something that had previously been free.
My point there is that they’re very willing to charge at a price point that would be painful to 3PP.

All of this is obviously moot if they don’t successfully grow DDB and launch their VTT. If they are, and yes, that is a big if, then their path becomes fairly clear to me - 3PP will want to be on their platform but the price for being on that platform will start to increasingly rise.
 

My point there is that they’re very willing to charge at a price point that would be painful to 3PP.

All of this is obviously moot if they don’t successfully grow DDB and launch their VTT. If they are, and yes, that is a big if, then their path becomes fairly clear to me - 3PP will want to be on their platform but the price for being on that platform will start to increasingly rise.
And? If the cost is too high the 3PPs will stop working with DDB.
 


But the point is valid. We've seen the reaction videos - they are all delighted to be able to sell on DDB. Morrus has stated that he would sell there. It just seems like a business opportunity, and if WotC charges a price point that is too "painful" for 3PP, then they won't pay it. Obviously, that's not how they see it.

Your position seems to me to imply that the 3PP are irrational actors in this transaction. But they strike me as smart and capable of making sound decisions. Every business transaction involves weighing costs and benefits. When you sell through a third party, there's a cost, and you don't pay it unless you see a greater benefit.

Like, if I sell my house through a realtor, I understand that I am paying them a cut, but I also predict that I will still make more money, have a safer transaction, whatever, than I would have by going it alone. So I make that informed business choice.
 
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Yeah, without knowing him personally, I can only think that he's about as good as we can probably get. He's clearly known of D&D for a loooong time, and possibly played it.
His tweet:

(I would be astounded if he hadn't played D&D, quite frankly).

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Cheers,
Merric
 



You pay a cut to sell your product at someone else's store, whether that store is a FLGS, Amazon, Roll20, or DnDBeyond. I don't see how WotC expecting a cut is problematic, and clearly the folks entering into these deals have concluded that it makes sense for them, as well. To a person, they seem delighted at the opportunity.

Buying, operating, and expanding DDB is not free, anymore than running a FLGS is free.
No, it is not at all. The point I was attempting and failing to make is that the cut at DDB (or RPGNow, or ... ) is entirely different than the proposed and killed 25% royalty.
 

Your position seems to me to imply that the 3PP are irrational actors in this transaction.
I’m not intending to imply anything of the sort. If being part of that marketplace works for them, great. I’m just foreseeing a future where WotC has market dominance and pricing power. I’d be more worried about Roll20 in this scenario as their most direct competitor.

And don’t misunderstand - I’m not saying 3PP shouldn’t do this. I’m talking about the cycle this could take, predicated upon WotC being successful for starters with its VTT and so on.
 

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