Forgotten Rums....? Evil Overlords...?

Margins... stupid.

The real problem is that "maximizing margins" is a *stupid* business plan for a publishing business.

I repeat, a *stupid* business plan.

You can't expect that any given book will have the same sales as any previous book. Book sales aren't predictable in that manner. And the market is inherently fragmented; most books will only sell to a particular submarket, not to "all readers".

This is akin to the insanity experienced by many major publishers when they decided that they would only publish blockbusters. Great margins! Sucky profits!

The majority of the profits in the publishing industry are in 'middle margin' books, which make a decent profit. By abandoning anything with less than stellar margins, you're abandoning about 80% of the market.

And nobody would argue that aiming to reduce your market share was, generally, good business.

Perhaps the correct argument is "We need these lower margin books in order to maintain market share." Because it's true.
 

log in or register to remove this ad

I am an MBA as well as someone who has played RPGs for about 15 years, giving me some perspective from both sides. I agree with Eric Noah wholeheartedly that this situation really boils down to players and DMs. Your typical gaming group on average probably has about five players for every DM with perhaps one alternate dungeon master. Simple economics will dictate that that a DM-oriented book is only going to do about 20% the sales of a core rulebook.

Wizards of the Coast has done a good job of creating a flexible and well-balanced game system. Its been great to see some of the creativity in some of the rules supplements, but the sheer number of extra feats, prestige classes, etc. have really reached their saturation point. Furthermore, with every new supplement I have to worry about how this affects game balance, so it is more of a headache now than it is worth. I do not plan buying any more rules supplements, unless there is a really compelling reason. My players can buy new ones but I will not let them use it in my campaign. What Wizards of the Coast has done a poor job of is support for the dungeon master. That “fluff” stuff as it is called provides important material for me as a dungeon master.

I am a person without a ton of time to plan out a game session yet will not run a game unless it is quality. The DM-oriented materials provide economic way for me to put together a game without having to spend a ton of time on it. I simply weave together “fluff” stuff from modules, Dungeon magazine, and a good campaign world to create a great campaign. If the players do something I don’t expect during a game session then I have more materials to weave in to make the appropriate adjustments. I buy these DM products based on two factors. I look for the quality of ideas within the RPG product and how flexible it is to integrate this stuff with my current campaign. The Forgotten Realms was good campaign world because it was generic enough that I could take the Sinister Secret of Saltmarsh or the Slavelord modules or any other of my previous materials and integrate them in … but also interesting/quality/unique enough that I actually want to use the Forgotten Realms.

Now I wouldn’t say I am representative of all DMs out there, but I am someone who has probably spent thousands of dollars on D&D products. There are some DMs have the time to come up with their own stuff, but there are others like me who rely on a steady stream of DM-oriented quality products.

The current Wizards of the Coast strategy is not a very good one, because it provides good support for players but not DMs. This may just be a unique case but I recently found a group of players who could not find a DM. None of the players from within this group was willing to DM either, so for the last couple months the group has sat idle. How long before this group of players starts to lose interest in the game altogether? This may not hurt sales for Wizards of the Coast in the short run on a product by product basis but it will hurt sales in the long run from an overall system-wide basis.

Just because DMs do not generate the revenues that players do, doesn’t mean that they should be ignored. DMs are very important influencers (opinion leaders) about what the players play. If I feel like a game system just isn’t working for me, I will try something new with my players. If we all like it and it lasts we will start gravitating to that new system, meaning my players stop buying stuff from the old system and start buying stuff form the new system. The point, though, is roleplaying games aren’t like other games and Hasbro doesn’t understand this.

Roleplaying products form an overall game system, just like computer components like your processor and disk drive make up your computer. It takes the right balance of these components (rules, story, setting, action) to make a good system. Some of these components are not very profitable and some are much more profitable, but if some aspect of these components is seriously lacking the overall computer then it can seriously impair the computer system.

The fundamental problem boils down to this. The hurdle rates which Hasbro uses to measure their other more self-contained, insular products (Monopoly, Clue, etc.) are not properly aligned to measure the complexities of a roleplaying game system. How badly Monopoly sells may not have an influence on how well my Clue game sells. Therefore setting hurdle rates at the product level is not a bad idea for these sorts of games. However, product-level metrics are not such a good idea for inter-related roleplaying products. Maybe Product A does not sell as well but perhaps its real value is in enhancing sales of product B, C, and D as well as helping sustain my overall brand. These case-by-case product-based metrics cannot truly measure this and force managers into bad decisions. Therefore Wizards of the Coast needs to make the case to Hasbro management for metrics that are more in line with the realities of the D&D game. There is nothing worse for a company’s long term future than using the wrong metrics. I suggest management at Wizards of the Coast read “The Goal” by Eliyahu Goldratt. It provides a good example of the problems caused by looking at independent metrics without regard interrelationship between these metrics.
 

You said it better than I did. :-) The computer analogy is rather good, too.

We're all in favor of a profitable D&D division.

The short-term focus on individual products' profit margins is detrimental to the profitability of the line as a whole.

Giving Hasbro a set of metrics which are actually appropriate to the business might get their heads pointing in the right direction... the metrics used to determine whether to keep making "Clue" aren't appropriate for determining what to put out for D&D.
 

Well said, Sholari! That is indeed a good idea! RPGs just aren't the same as any other games that Hasbro is selling. Nor are they like any other book that we can pick up in an airport bookstore. They straddle a middle-ground that is unique to itself, I think. And new methods of evaluating success and failure are sorely needed.

But after about 20 years of trying to find a niche for RPG's and the products that support them, and all the mistakes that have been made over those years...the bad marketing ploys, the oversaturation, the undersaturation, the up-and-down quality... Hasn't Hasbro learned ANYTHING? Who do we need to wake up so attention can be paid? How many times does a dearly beloved product line (whether it's Greyhawk, FR, or D&D in general) have to be abused before someone finally stands up for it?
 

So we were on the same page Wicht. Sorry I misunderstood.

I think the idea of the correct metric for WOTC may be valid. But I also think we are probably not seeing the full picture. Probably no one but the hated Bean-Counters are seeing the full picture and that will certainly skew opinion. It might be they are taking such things into consideration as interconnectivity. But we just do not see the formulas.

I am willing to give them the benefit of a doubt. But if I had my money to spend from this weekend again, I would not have bothered with the ELH. I still would have bought the Silver Marches. But that is just one person, in Dallas, the ELH sold out in several game stores I went to this weekend (3) but there were still copies of SM on the shelves. As can be seen by any discussion on the board it is hard to find two people who game who agree on what needs to be made next. The full range of love to hate is expressed on any product that comes out. So I can see the difficulty in a corporation trying to figure out why books sell or not.
 

2 coments:

First, yes, there are too many feats and PrC as it is. Just look at archers... there are 4 archer prestige class, that I know of, in WotC books alone.

Second, while there are more players than DM, DMs make the game happen and tend to buy more books.

Ancalagon
 

Sholari said:
I am an MBA as well as someone who has played RPGs for about 15 years, giving me some perspective from both sides. I agree with Eric Noah wholeheartedly that this situation really boils down to players and DMs. Your typical gaming group on average probably has about five players for every DM with perhaps one alternate dungeon master. Simple economics will dictate that that a DM-oriented book is only going to do about 20% the sales of a core rulebook.
I dunno. In my group of six-seven people, we only bought one copy of the PHB. One of us bought another, but only because he plays in another campaign with another group - and in that group, that PHB is the only one too.

Of course, we are all poor students and 20$ are something for us.
 

Coreyartus said:
Hasn't Hasbro learned ANYTHING

Uh... no. Not yet anyway.

Hasbro bought a toy company that previously bought a publishing company. IMO publishing is not a feat they possess yet. Right now they are enrolled in the school of hard knocks. They'll learn. FR may be licensed off but once they figure out how to run an RPG publishing company...
 

Orcus said:

PS--as for buying D&D, no thanks. I'll just take the Open Game Content, rename it Dragons & Dungeons, and throw more cool 1E feel back in the rules and republish it. License agreements? Puhleeeez. And while I am dreaming I would find Dave Trampier and drag him out of hiding to do the interior art! :)

Whoa -- you guys are going to buy Hackmaster? Zounds!

...minutes later...

Mr. Roper leans over the sink drain pipe and mis-hears people talking upstairs.

*bewildered look*

"Chrissy's PREGNANT???"

...a few more minutes later...

Oh, Dave *TRAMPIER*, not Dave *KENZER*.

P.S. I agree that FR should be spun off into or sold to a smaller company for which the current sales figures would be considered a wild success rather than a failure. These products need to be produced in order to drive sales of the core books for WotC/Hasbro.
 

After reading through many, many pages of this post, one thought came to me: can't we please stop with the metaphors? It was great for one post, ok for 5, ridiculous for 10... Let's just call em Wizards of the Coast, Forgotten Realms, and Dungeons and Dragons etc. It just makes it a little easier to read, and it halts some of the questionable creativity :)
 

Remove ads

Top