CharlesRyan
Adventurer
CaptainChaos said:Only two people with actual experience in this area of business have posted in this thread, Charles Ryan and Chris Pramas, and it doesn’t seem that they are in agreement.
Um, unless I'm misunderstanding someone here, I am in complete agreement. Similar non-random business models have fared unfavorably in comparison to the random business model. I absolutely agree with that statement.
Let me introduce you to a little company called Games Workshop. They are the biggest and most profitable miniatures company in existence. Nothing WotC has done has with DDM has changed that. The existence of companies like GW, Privateer, and Reaper proves that the non-random distribution is absolutely possible.
So why does GW continue to eat WotC for breakfast in the minis market?
Games Workshop is an interesting example, but be careful not to confuse two different business phenomena at work here. GW is a market leader and innovator, in the same way that D&D is the RPG market leader and innovator. By that I mean that they both pioneered and grabbed an early, massive lead in their respective categories. (I don't mean that they're necessarily innovative today or throughout their lives.)
It's a truism of business--all business, not just games--that a market leader of this sort is virtually impossible to knock off, unless they blunder horribly or the marketplace changes dramatically and they don't react. Despite enormous ups and downs over the past 30 years, D&D remains the undisputed king of RPGs, in terms of sales, players, and brand recognition. No competitor has any real chance of changing that unless there's a massive shift in the marketplace that WotC ignores, or WotC otherwise completely screws up D&D (screws it up even worse than TSR did, because even that didn't topple D&D).
GW is in the same position with minis.
GW's market and brand position is such that it would take an enormous effort, and 10s of millions of dollars, for any company even to sidle up toward a close second place to them. Which, in turn, means that the marketplace really doesn't have room for another miniatures line based on the same nonrandom model.
This plays itself out in the LGS pretty obviously: retailers that devote enough shelf space to carry a full line of GW don't generally have enough resources to support a second large line of nonrandom minis.
So GW actually becomes a counter-argument: There's a powerful market leader that already dominates the non-random minis business. It would be suicidal for WotC to try to beat GW at their own game; they're much better off (and so are any gamers who want to have D&D miniatures) doing something very different and growing the market in a different direction.
[As an aside, it's arguable whether DDM has not affected GW, or that GW continues "to eat WotC for breakfast." Yes, GW is huge in the minis market--much bigger than WotC--but you might want to check their recent shareholders reports before citing them so vehemently. And comparing Privateer and Reaper to DDM is a little like comparing Spycraft to D&D.]