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<blockquote data-quote="Umbran" data-source="post: 2987114" data-attributes="member: 177"><p>No, it isn't. "Overhead" is your cost of doing business. Higher overhead means you need greater gross income to cover costs. Since profit is what you get <em>after</em> you cover your overhead, it doesn't need to be bigger.</p><p></p><p></p><p></p><p>In a sense, you've got it backwards. In absolute terms, a larger company does have greater overhead, yes. But in relative terms, per product, a successful company can take advantage of economy of scale, and have <em>less</em> overhead per unit.</p><p></p><p>In general, companies are in the business of making money. If they aren't making use of their available economy of scale, they aren't making as much money as they could. There's no reason for them to do that. Rather than support poor earners, they'll seek larger earners.</p><p></p><p>Traditionally, RPGs have been a niche market - they don't sell enough units to take real advantage of the economy of scale Hasbro has available. So they are a poor fit for the company. They'd prefer to invest in something that can make real use of their massive production and distribution, like Pokemon and Magic cards could.</p><p></p><p>I don't agree with Wulf, insofar as I don't think matching a smaller product with a larger company will tend to be a winning proposition for either. For best results, the product line ought to seem big for the company that owns it, rather than small. That means the company will be more likely to have the good of the product foremost in it's mind. Our favorite thing really needs to be someone's favored baby, not the weakling stepchild that never measures up to it's siblings <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":)" title="Smile :)" data-smilie="1"data-shortname=":)" /></p></blockquote><p></p>
[QUOTE="Umbran, post: 2987114, member: 177"] No, it isn't. "Overhead" is your cost of doing business. Higher overhead means you need greater gross income to cover costs. Since profit is what you get [i]after[/i] you cover your overhead, it doesn't need to be bigger. In a sense, you've got it backwards. In absolute terms, a larger company does have greater overhead, yes. But in relative terms, per product, a successful company can take advantage of economy of scale, and have [i]less[/i] overhead per unit. In general, companies are in the business of making money. If they aren't making use of their available economy of scale, they aren't making as much money as they could. There's no reason for them to do that. Rather than support poor earners, they'll seek larger earners. Traditionally, RPGs have been a niche market - they don't sell enough units to take real advantage of the economy of scale Hasbro has available. So they are a poor fit for the company. They'd prefer to invest in something that can make real use of their massive production and distribution, like Pokemon and Magic cards could. I don't agree with Wulf, insofar as I don't think matching a smaller product with a larger company will tend to be a winning proposition for either. For best results, the product line ought to seem big for the company that owns it, rather than small. That means the company will be more likely to have the good of the product foremost in it's mind. Our favorite thing really needs to be someone's favored baby, not the weakling stepchild that never measures up to it's siblings :) [/QUOTE]
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