layoffs?

[DaveMage]

I highly suspect that paper books will not be the majority line item in their gross profits within the next few years.

Is it the majority item now?

 

[Fifth Element]

Is it the majority item now?

I've always heard MtG is a bigger part of their business than D&D.

 

[Daniel D. Fox]

Is it the majority item now?

Note that they qualified the layoffs as a "digital consolidation".

I should have been more specific - MtG likely have a very high cost of goods, and D&D as well with the cost of material. Since they're moving towards an online version of Magic and the gametable for Dungeons and Dragons, I believe it's easy to figure out where they want to be in 2009.

 

[AllisterH]

Is it the majority item now?

That's a good point.

Doesn't MTGO now account for something like 35% of MTG sales and it is increasing....

 

[TerraDave]

...
Reached for comment by ICv2, a WotC spokesperson noted, “Wizards of the Coast consolidated its digital game organizations to streamline execution of digital growth strategies for core brands.”

Wizards of the Coast President Greg Leeds also weighed in. “Consolidating internal resources coupled with improved outsourcing allows us to gain efficiencies in executing against our major digital initiatives Magic Online and D&D Insider,” he said. “Wizards of the Coast is well positioned to maximize future opportunities, including further brand development on digital platforms. The result of this consolidation is a more streamlined approach to driving core brands.”
...

This could most politely be described as dilbertesque.

 

[rowport]

You have it exactly backwards. Non-essentials are the FIRST thing people cut out of their budget. During a recession people spend their money on things like food, or rent, or mortgage, or clothing, or electricity, or gas. But the fact that WotC isn't in congress begging for $700 billion like the banks, or threatening to go out of business and lay off thousands upon thousands of employees like the car industry, suggests they're doing much much better by comparison.

Vaernon-

Not trying to be confronational, but curious; is this conjecture or based on economic data? My understanding matched Zil's, that low-cost entertainment like movies, games, etc. have lots of staying power in bad economic conditions because folks need the escape. High-ticket non-essentials like new cars, big televisions, etc. are unquestionably impacted-- you are right about that-- just not sure about the RPG market, since I would describe that in the former category.

 

[Fifth Element]

This could most politely be described as dilbertesque.

Eh, that's pretty standard corporatespeak. It basically means "We decided we had too many full-time people working on the digital stuff, and figured it could be handled just as well with fewer of our staff, supplemented by contractors as needed."

But you can't get your Corporate President license talking like that. They have quotas for "efficiencies", "core brands", and "streamlined", you know.

 

[Fifth Element]

Not trying to be confronational, but curious; is this conjecture or based on economic data? My understanding matched Zil's, that low-cost entertainment like movies, games, etc. have lots of staying power in bad economic conditions because folks need the escape. High-ticket non-essentials like new cars, big televisions, etc. are unquestionably impacted-- you are right about that-- just not sure about the RPG market, since I would describe that in the former category.

I think it makes sense that games would be among the last entertainment items to be cut from the budget. But if the economic downturn is bad enough, they can still be affected.

 

[DaveMage]

This could most politely be described as dilbertesque.

I was thinking the same thing - and chuckling while I read that statement.

I'm thinking of using his statement in my daily conversation at work, just to annoy people.

 

[Radiating Gnome]

I'll add my tiny voice to the chorus of laments and well wishes for the folks who were laid off. I'm coming to the conversation far too late to say anything new in terms of my disappointment . . . but that doesn't make it any less deeply felt.

It's got to be tough for everyone -- obviously mostly for those laid off, but it's no fun for those left behind, who surely can't even comment on the layoffs on boards like this. It's interesting how meeting these folks at cons and listenting to the podcast makes them feel like my friends, people I really know, and how deeply I feel for them all in this situation. And I'm clearly not alone.

-j