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General Tabletop Discussion
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D&D Insider - how many subscriptions? (and speculation on profitability)
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<blockquote data-quote="Mercurius" data-source="post: 5431426" data-attributes="member: 59082"><p>Do we know the answer to this question?</p><p></p><p>I'm just trying to get a sense of how much of WotC's D&D sales is from DDI. Now of course I have no idea what WotC's D&D sales are, but maybe we can guess. Things have been pretty whacky since last summer, but how many books do we think WotC sells in a given month? Maybe we can convince Erik Mona to give us a <em>general</em> idea of how much Pathfinder stuff sells.</p><p></p><p>I guess what I am really wondering is if DDI sales make up for lack of book sales. Everyone assumes that 4E is suffering because book sales have gone down, but it may be that they are doing OK because of DDI. I would assume that the profit margin is higher on subscriptions than it is on printed books, at least after the initial cost to design the software.</p><p></p><p>So if, for example, there are 50,000 monthly DDI subscriptions with an average cost of $8, that's $400,000 in monthly sales at a relatively good profit margin. If in a typical month WotC comes out with two paper products for an average of $30 each and sells 20,000 of each, that's 2 x $30 x 20,000 = $1,200,000, quit a bit more. But how much of that $1.2M is profit? The distributor and bookstore get about half of that, the cost of production is probably half of the remaining, so I'm thinking WotC makes about $300,000 on it, which of course must pay for the writers and artists. $400,000 in DDI sales might be roughly equivalent in value.</p><p></p><p>Thoughts?</p></blockquote><p></p>
[QUOTE="Mercurius, post: 5431426, member: 59082"] Do we know the answer to this question? I'm just trying to get a sense of how much of WotC's D&D sales is from DDI. Now of course I have no idea what WotC's D&D sales are, but maybe we can guess. Things have been pretty whacky since last summer, but how many books do we think WotC sells in a given month? Maybe we can convince Erik Mona to give us a [I]general[/I] idea of how much Pathfinder stuff sells. I guess what I am really wondering is if DDI sales make up for lack of book sales. Everyone assumes that 4E is suffering because book sales have gone down, but it may be that they are doing OK because of DDI. I would assume that the profit margin is higher on subscriptions than it is on printed books, at least after the initial cost to design the software. So if, for example, there are 50,000 monthly DDI subscriptions with an average cost of $8, that's $400,000 in monthly sales at a relatively good profit margin. If in a typical month WotC comes out with two paper products for an average of $30 each and sells 20,000 of each, that's 2 x $30 x 20,000 = $1,200,000, quit a bit more. But how much of that $1.2M is profit? The distributor and bookstore get about half of that, the cost of production is probably half of the remaining, so I'm thinking WotC makes about $300,000 on it, which of course must pay for the writers and artists. $400,000 in DDI sales might be roughly equivalent in value. Thoughts? [/QUOTE]
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