Console Cowboy
First Post
I think you underestimate how small RPGs are in the market. Let's start with this essay by Ryan Dancey. Regardless of whether or not I agree with all of his conclusions, he brings some relevant data to the conversation. WotC has spent years trying to find marketing that works and that is market efficient. One thing Dancey highlights, which should be obvious, is that D&D has a much tougher market to work with; expecting D&D to expand it's audience as easily and dramatically now as it did in the 1970s and early 1980s simply isn't realistic in a world with so many choices, when I can play an RPG on my phone or run a WoW raid with 60 other people. Further, the market has radically changed: fewer distributors, fewer stores and now online vendors who offer deeper discounts but with no network externalities that Dancey mentions.
D&D remains the flagship product of the RPG industry. Pathfinder is currently beating it in sales from quarter-to-quarter, but I believe that it's never enjoyed positions on the NYT bestseller lists, while 4E has. The problem here is not advertising for brand awareness. D&D HAS that. Here's a demonstration for you. If I go to Toys 'R' Us, with 1500 stores globally and more than 14 Billion US dollars in revenue and enter the following terms:
Dungeons and Dragons
Pathfinder
Cthulhu
TL;DR version: D&D has several hits, Pathfinder has non-RPG hits for some baby equipment and Cthulhu has two hits, one for a cell-phone holder and another for Cthulhu Munchkin. You may notice that for D&D, THE ACTUAL RPG IS NOT LISTED THERE. Instead they list Ravenloft, an anthology of the old 'Gold Box' games and the D&D-themed Heroscape supplement. Again, because the D&D brand is stronger than the actual game. Cthulhu has more recognition by this metric, which honesty isn't a great one, but it's illustrative for our purposes here.
Here's another point for you: what happens when we enter Role-Playing Game? We find where all those potential players have gone, perhaps. Who do you think has a bigger advertising budget in the Seattle-Tacoma game area? WotC or Nintendo? [quick hint: the one of them was bought in the last decade by a large toy company has the smaller one] The problem here is that D&D has competition from a lot of other venues for gamers and is no longer winning that fight.
WotC has spent advertising on their products before: to little benefit in terms of sales. Conventional advertising doesn't push sales in many cases, because most of the potential customers KNOW about D&D. They simply don't choose to play it based on the advertising. I've seen ads in comic books, gaming magazines and even on television. None of these generated an ROI that was worth the tiny margins that D&D operates under. From what some WotC employees have posted here on ENW, it's clear that M:tG has always been the big cash cow for the company...and traditional advertising had only marginal games for that. The problem is not reaching their intended audience, perhaps, but convincing that audience that D&D is a game they should spend time and money on in favor of other, often more convenient choices.
Understand I think that WotC NEEDS to grow the hobby, for reasons Hobo already explained up-thread. The market leader benefits the most...and getting more D&D players helps the hobby. Most gamers I know started with D&D and moved outwards to smaller games...or were brought into the hobby by those who had. But I have no great ideas how WotC can do that, short of releasing a good game and promoting it through a variety of specialized channels. I'd wager that the Pax Prime Penny-Arcade gaming podcast sessions probably did more to sell D&D 4E than the sum total of their print advertising, though I have no way to gauge that.
The long and short of it is that D&D and Pathfinder together don't sell huge numbers in the grand scheme of things. They have dedicated customers, but they are a niche market like comic books. Take a look at some of these numbers from Acaeum. D&D, at its height, was never clearing huge numbers of books and certainly aren't doing so now.
I think a large misunderstanding from many fans is overestimating the size of the RPG market and WotC's budget to increase it.
When you hit this situation it is time to redraw or redefine your market – and, subsequently, your marketing budget focus. It is not merely a semantics thing. It is sea change. It is about vision. It is about the kind of leadership D&D has not seen since the mid-80s.
It was a death-stroke level mistake for WotC to try to compete with video games. When they did that they disowned the strongest unique selling proposition (USP) of tabletop games that Gygax-era TSR had developed. Gygax knew it.
And he was outspoken about it.
I will take one ailing and aging Gygax over the whole bunch of young MBAs at WotC any day.
Consequently, this vision leads to WotC’s marketing calculation that the market is mature and the comparison to the declining model train market is concluded. There once were three blind men who stood touching an elephant along three different parts of its body, and it became an often quoted parable. What it means is: what you perceive can lockstep you into a very different vision than possible reality.
How far back does this perception go? Two words: Lorraine Williams.*see my comment below* (This speaks to Acaeum’s numbers and timeline you provide because nothing results in a vacuum.) This well predates Ryan Dancey and will have shaped his views and the understandings of his colleagues. His words serve to echo the foreshadowing TSR’s bankrupt had on the industry.
Psychological Operations in PR, my field, does this stuff all the time and is often called perception management. But what we can do for the benefit of the company can also negatively affect it.
I do not buy-in to the paradigm that the disappearance of so many traditional distributors is the death knell. I do see WotC’s contribution here through its stranglehold policies and practices euthanizing marketing partners.But WotC is into toys not publishing like TSR was back in the day. This is the very elephant in the room I am talking about, is it not? A company that does not understand the RPGs hobby and subsumes, in that lack of understanding, the hobby exists to serve the industry.
Whose responsibility is it indeed!
D&D does continue to enjoy great brand recognition, and that is the whole equity in the product. D&D Next is attempting to own the news cycle for the next year in preparation for a big launch, but that alone will not turn around the brand’s misfortune. I have seen things first hand in Europe, when I was pitching PR for the brand, and watched the relationship between Hasbro Be and the franchise D&D holder in amazed horror.
That is the tip of the iceberg and informs me why talent does not stay. But correct me if I am wrong, Monte.
This post is going long past my bedtime here but I had to speak out because my passion for both my hobby and my profession has me neck deep in this quagmire.
I agree with Rogue Agent’s observation about advertising R.O.I.. at this stage of the game and the fact that any reasonable media buying is not going to be profitable. I am not stuck to an advertising paradigm for communications, however. WotC would better serve itself by hiring a senior PR person for $75,000 with the sole specific objective to grow the hobby and steer well clear of gamers. WotC should also redefine its market.
In my own efforts to attracted new-to-the-hobby players, I have successfully accumulated English-speaking, first time D&D players who are expatriates in a non-English speaking country. But this has been accomplished outside of all the industry fairs and trade shows; far, far away from gaming magazines; and solely by selling the experience of the USP through the appropriate channels.
I am not the only person to notice the missed opportunities here. Again, I throw the ball at Monte Cook for commentary on his Kickstarter.
But what I have yet to see is WotC acknowledge, let alone imagine, a bright future for its product. I only see a marketing culture of fear, of circling the wagons and of new iterations that resemble a fish flailing for breath on the beach.
Last edited: