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Gaming industry economics, essay discussion, HELP!
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<blockquote data-quote="OnyxPharaoh" data-source="post: 5447712" data-attributes="member: 6669063"><p>I was refering more to the qualitative advantages these two organizations possess by straddeling the line between producers and consumers. Their combined reach in terms of driving market growing initiatives would be an advantage that individual producers of games cannot achieve alone.</p><p> </p><p> </p><p></p><p> </p><p>Bringing me back to my original point that current business models are not condusive to a healthy gaming company. If you can't achieve economies of scale then don't attempt it. If your margin is low, you have to reorganize your company in a way that will increase them. </p><p> </p><p></p><p> </p><p>When it comes to economies of scale, print on demand is still lacking. If you are running millions of books then POD doesn't compare to offset printing. But if you are a small publisher looking to do thousands of books, then POD is hands down the way to go. Your biggest money saving feature in POD is shallow inventory.</p><p> </p><p>When a company has their book printed they have to invest a certain amount of cash ahead of time to print a contracted number of books. This money is now gone and can't be recovered until the books are sold. But if the books don't sell then you are just <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=":)" /><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=":)" /><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=":)" /><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=":)" /> out of luck. You sell the books at a loss or use them for furniture</p><p> </p><p>With POD you never have this idle cash sitting around in the form of invetory. So now you're money can be invested in assets that are going to produce an actual return for your company like marketing or another product line. Costs for the development of the project are recovered quicker because you don't have the added costs of idle inventory. For small companies this is an incredibly powerful advantage.</p><p> </p><p></p><p> </p><p>In one quarter Border's stock managed to drop 94.7%. That's fast in my book. And actually Borders is one of four major book retailers in the United States joined by Amazon, Barnes and Nobles, and Books-a-Million.</p></blockquote><p></p>
[QUOTE="OnyxPharaoh, post: 5447712, member: 6669063"] I was refering more to the qualitative advantages these two organizations possess by straddeling the line between producers and consumers. Their combined reach in terms of driving market growing initiatives would be an advantage that individual producers of games cannot achieve alone. Bringing me back to my original point that current business models are not condusive to a healthy gaming company. If you can't achieve economies of scale then don't attempt it. If your margin is low, you have to reorganize your company in a way that will increase them. When it comes to economies of scale, print on demand is still lacking. If you are running millions of books then POD doesn't compare to offset printing. But if you are a small publisher looking to do thousands of books, then POD is hands down the way to go. Your biggest money saving feature in POD is shallow inventory. When a company has their book printed they have to invest a certain amount of cash ahead of time to print a contracted number of books. This money is now gone and can't be recovered until the books are sold. But if the books don't sell then you are just :):):):) out of luck. You sell the books at a loss or use them for furniture With POD you never have this idle cash sitting around in the form of invetory. So now you're money can be invested in assets that are going to produce an actual return for your company like marketing or another product line. Costs for the development of the project are recovered quicker because you don't have the added costs of idle inventory. For small companies this is an incredibly powerful advantage. In one quarter Border's stock managed to drop 94.7%. That's fast in my book. And actually Borders is one of four major book retailers in the United States joined by Amazon, Barnes and Nobles, and Books-a-Million. [/QUOTE]
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