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Economics of a 4th Edition
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<blockquote data-quote="Graf" data-source="post: 2833709" data-attributes="member: 3087"><p>While sales from the PhB are large you don’t really break out revenue streams based on their size… you break them out based on their characteristics. For the purposes of discussing a new edition the 3.5 PhB revenue stream is (except for its size) virtually identical to the stream from the DMG, the MM, the Complete Books, and so on.</p><p>(Its not the same in all cases, releasing the Complete Mage is probably positive/neutral for the PhB but could have any number of different effects on the Complete Arcane depending on how complementary/substitutional it’s material is.)</p><p><em>Ok. Substitutional isn’t a word, but it’s the internet… I can just make up new words… right?</em></p><p></p><p></p><p></p><p>You (or ‘one’ if you find my use of pronouns confusing) make an assumption in an economic argument because you have to to get started. </p><p>I overtly stated the assumption because it’s the way you go about making a rigorous argument. You’re assumption, that Hasbro isn’t involved in any decisions about DnD at all, isn’t inherently more correct because you want to present it as fact, instead of as an assumption.</p><p></p><p>I'm unaware of "all this evidence"... the fall of the CCG revenue stream post-Pokemon did, in fact, impact Hasbro's bottom line. And, as I said before, we're talking about an edition change, not selecting the next Eberron book. And edition change has the potential, I think most reasonable people would agree, to change the revenue stream from the Roleplaying R&D division significantly (including the possibility, however remote, of turning the unit unprofitable)</p><p></p><p>When a division is going to make a sweeping product change that will have an effect it’s the profitability of its entire product line it goes and talks to the people <u>above</u> them in the organizational structure. Those people, by definition, don’t work in the WotC division.</p><p></p><p></p><p>I don’t recall saying senior executive. Thank you for tossing that straw man up there though.</p><p></p><p></p><p></p><p>I assure you that when a division wants to make a sweeping change to its product line that may turn handsome profits or could disrupt cash flows and show a loss that would be precisely when the head of the game division (or maybe somebody they’ve designated) would get involved. </p><p></p><p>This kind of macro-management of product lines and cash flows is a fact of life at most corporations. Since this VP will be responsible for a division that was once profitable becoming unprofitable I assure you that 1) they care 2) if they’re competent they’re involved in the decision and, unless someone more senior is involved, they will be the person who pulls the trigger/greenlights the project/insert-your-favorite-fancy-management-phrase-here.</p><p></p><p>You may very well have worked at a mid-sized or large-size company and felt like you or your group had a lot of leeway and could do whatever you wanted but I can only suggest that you think of that as being outside the norm. The fate of an entire division’s last 6 weeks (or sometimes 6 months) of work really can depend upon a 30 minute meeting with an executive (read: key decision maker like your VP).</p><p></p><p>You’re statements about people being fired are almost certainly true, but they aren’t germane to the discussion. You may have experienced situations where somebody just randomly arrived at your office and hired or fired people on a whim, but generally personnel decisions are made by managers who’ve been watching the division.</p><p></p><p></p><p>You do realize you’re agreeing with the section entitled <strong>Market Saturation</strong>, above right?</p><p>(I realize it’s a bit long, sorry about that).</p></blockquote><p></p>
[QUOTE="Graf, post: 2833709, member: 3087"] While sales from the PhB are large you don’t really break out revenue streams based on their size… you break them out based on their characteristics. For the purposes of discussing a new edition the 3.5 PhB revenue stream is (except for its size) virtually identical to the stream from the DMG, the MM, the Complete Books, and so on. (Its not the same in all cases, releasing the Complete Mage is probably positive/neutral for the PhB but could have any number of different effects on the Complete Arcane depending on how complementary/substitutional it’s material is.) [i]Ok. Substitutional isn’t a word, but it’s the internet… I can just make up new words… right?[/i] You (or ‘one’ if you find my use of pronouns confusing) make an assumption in an economic argument because you have to to get started. I overtly stated the assumption because it’s the way you go about making a rigorous argument. You’re assumption, that Hasbro isn’t involved in any decisions about DnD at all, isn’t inherently more correct because you want to present it as fact, instead of as an assumption. I'm unaware of "all this evidence"... the fall of the CCG revenue stream post-Pokemon did, in fact, impact Hasbro's bottom line. And, as I said before, we're talking about an edition change, not selecting the next Eberron book. And edition change has the potential, I think most reasonable people would agree, to change the revenue stream from the Roleplaying R&D division significantly (including the possibility, however remote, of turning the unit unprofitable) When a division is going to make a sweeping product change that will have an effect it’s the profitability of its entire product line it goes and talks to the people [u]above[/u] them in the organizational structure. Those people, by definition, don’t work in the WotC division. I don’t recall saying senior executive. Thank you for tossing that straw man up there though. I assure you that when a division wants to make a sweeping change to its product line that may turn handsome profits or could disrupt cash flows and show a loss that would be precisely when the head of the game division (or maybe somebody they’ve designated) would get involved. This kind of macro-management of product lines and cash flows is a fact of life at most corporations. Since this VP will be responsible for a division that was once profitable becoming unprofitable I assure you that 1) they care 2) if they’re competent they’re involved in the decision and, unless someone more senior is involved, they will be the person who pulls the trigger/greenlights the project/insert-your-favorite-fancy-management-phrase-here. You may very well have worked at a mid-sized or large-size company and felt like you or your group had a lot of leeway and could do whatever you wanted but I can only suggest that you think of that as being outside the norm. The fate of an entire division’s last 6 weeks (or sometimes 6 months) of work really can depend upon a 30 minute meeting with an executive (read: key decision maker like your VP). You’re statements about people being fired are almost certainly true, but they aren’t germane to the discussion. You may have experienced situations where somebody just randomly arrived at your office and hired or fired people on a whim, but generally personnel decisions are made by managers who’ve been watching the division. You do realize you’re agreeing with the section entitled [b]Market Saturation[/b], above right? (I realize it’s a bit long, sorry about that). [/QUOTE]
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