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How Wizards of the Coast Could Slay in Profit
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<blockquote data-quote="kitsune9" data-source="post: 5843324" data-attributes="member: 18507"><p>I agree. If 80% of your market moved on, 10% dropped out, and 10% of your market stayed in x edition, that's only 10%. Back in 1e and 2e's days, they had millions of active players because that's what there was to play. Now I doubt that there's even 1% of that who is adamantly strictly 1e (not a retro-clone). With each new edition, there is the issue of adopting, non-adopting, or dropping out (finding a new game or leaving the hobby altogether).</p><p></p><p></p><p></p><p>Excellent point! Working up a production budget for a limited market is a sure fire way toward losses. A lot of people don't understand the costs of production--<em>direct costs</em> (salaries, benefits, vacation accrual, vendor agreements such as hiring artists and freelance writers, printing, supplies, shipping, distribution fees, etc.) and<em> indirect costs</em> (utilities, janitorial, IT support, business licensing renewal, rent, maintenance, etc.).</p><p></p><p>The comment about the publication and advertising just to generate interest is going to involve start up costs.</p><p></p><p></p><p></p><p>Another well-said point. You described what is commonly called in business "core competency" and "strategic advantage". WotC's core competency is working and designing support for the current edition and providing licensing and add-on products for the brand. Their strategic advantage is the strength of the brand itself and how they position themselves in the market. Since they abandoned the previous editions, that's no longer their core competency and now OSR's core competency is everything related to old editions and Paizo's is Pathfinder.</p><p></p><p></p><p></p><p>Spoken like someone who attended MBA classes. Excellent post.</p></blockquote><p></p>
[QUOTE="kitsune9, post: 5843324, member: 18507"] I agree. If 80% of your market moved on, 10% dropped out, and 10% of your market stayed in x edition, that's only 10%. Back in 1e and 2e's days, they had millions of active players because that's what there was to play. Now I doubt that there's even 1% of that who is adamantly strictly 1e (not a retro-clone). With each new edition, there is the issue of adopting, non-adopting, or dropping out (finding a new game or leaving the hobby altogether). Excellent point! Working up a production budget for a limited market is a sure fire way toward losses. A lot of people don't understand the costs of production--[I]direct costs[/I] (salaries, benefits, vacation accrual, vendor agreements such as hiring artists and freelance writers, printing, supplies, shipping, distribution fees, etc.) and[I] indirect costs[/I] (utilities, janitorial, IT support, business licensing renewal, rent, maintenance, etc.). The comment about the publication and advertising just to generate interest is going to involve start up costs. Another well-said point. You described what is commonly called in business "core competency" and "strategic advantage". WotC's core competency is working and designing support for the current edition and providing licensing and add-on products for the brand. Their strategic advantage is the strength of the brand itself and how they position themselves in the market. Since they abandoned the previous editions, that's no longer their core competency and now OSR's core competency is everything related to old editions and Paizo's is Pathfinder. Spoken like someone who attended MBA classes. Excellent post. [/QUOTE]
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