D&D 5E Mike Mearls explaining his view of D&D and how it should be merchandize

[Eirikrautha]

What I don't get is if RPG books didn't make money then why are there so many successful rpg game companies out there right now? Perhaps WotC just needs to manage their money better.

Define "successful". With statistics to back it up. Because, based on what I've seen, there are almost no successful RPG game companies at all. There are a few garage-companies that are barely making a profit. There is Paizo, the industry leader at this point, who is tiny compared to any leader in just about any other industry. And there's Hasbro, for which all of D&D is a rounding error. There's not a single entity in this field that would be considered even investment-worthy. I fail to see how "managing money" can change that.

 

[Morrus]

Don't suppose there's a transcript anywhere, or at least a summary?

Ah, yes, here's my transcript from a year ago. Not the whole thing, just a bit from the middle.

 

[painted_klown]

Interesting transcript, and I believe Mike Mearls is spot on with is assessment.

 

[Jefe Bergenstein]

That is how Mearls sees D&D? Not as a niche hobby, but as competing against card games, video games, and the like?

Its kind of what he competes against when he argues for a bigger budget from Hasbro (or any budget at all!). They could stick the money in D&D, or some other project which will likely pay off more for their shareholders. Its one of the drawbacks of being owned by a large company not devoted to your specific game.

 

[Zaran]

I can point out that Fantasy Flight is doing well with Star Wars. Catalyst is doing ok with Shadowrun even though they flubbed their editing. If they were losing money their respective companies would have shut down the RPGs.

 

[Eirikrautha]

I can point out that Fantasy Flight is doing well with Star Wars. Catalyst is doing ok with Shadowrun even though they flubbed their editing. If they were losing money their respective companies would have shut down the RPGs.

Define "doing well." The fact that they haven't gone bankrupt (yet) is hardly a sign of prosperity. In fact, TSR published the most stuff right before they went under. How much profit did FFG make on SW? Would it even be measurable/lauded in another industry?

The vast majority of these publishers are not publicly traded companies, so we don't get to see their books. They appear to be making a living at it... but I'm making a living at my job. That doesn't mean that I could be a multimillionaire with a little "money management"...

 

[Zaran]

Define "doing well." The fact that they haven't gone bankrupt (yet) is hardly a sign of prosperity. In fact, TSR published the most stuff right before they went under. How much profit did FFG make on SW? Would it even be measurable/lauded in another industry?

The vast majority of these publishers are not publicly traded companies, so we don't get to see their books. They appear to be making a living at it... but I'm making a living at my job. That doesn't mean that I could be a multimillionaire with a little "money management"...

If the employees are getting paid, fans are getting books, and the company is in the black then why does it need to make millions? If they net a 100 dollars it's still a profit.

 

[Doc_Klueless]

If the employees are getting paid, fans are getting books, and the company is in the black then why does it need to make millions? If they net a 100 dollars it's still a profit.

Because businesses as a whole don't work that way. If my crappy MBA has taught me anything, it's that businesses look at Return On Investment. Which is to say: yes, I can make $100 on RPGs using the same resources or I can make $1000 on Brand Name Widgets using the same resources. With that extra $900, you can give employees raises, add dental insurance, give more paid vacations/sick time off, invest it in other products that make you money, make an RPG, etc. etc...

It's all about using resources to their greatest potential.

Edit: It can also make a business adverse to risk-taking since they do not have the financial cushion to fall back on if a product they create tanks. Without such a cushion, it doesn't take much of a failure to ruin the whole business.

I now return you to your conversations...

 

[Ace]

From a 2014 PAX panel hosted by Ryan Dancey. Not sure if it was posted on ENworld before, but it explains a lot what we are seeing with the release schedule of the RPG and the license bonanza.

Not sure we'll see much RPG support, since Mearls doesn't seem to believe people are that much interesting in books they will not really use. A dozen apps? Yup.

Quite interesting. Thanks.

I think its making some strange assumptions though, that D&D players are far more techie and heavily computer aided than they really are and that of course they can get the money they'd spend on steam to be spent on apps? We certainly have tablets and smartphones and laptops galore but they rarely get used and having an app is not better, its actually worse than a sheet of paper in term of utility. We don't really need the official app to make a character sheet and print it out .

I think is people play D&D to be around other people and to not be on the computer so much. It does compete with cards to some degree or at least in did a decade ago but I'm not so sure that is the case now. Anecdotes are not evidence of course but in my gaming circle (a dozen or so with seven regulars) no one is playing any of the collectible card games. The economy has taken such a hit that they regular card churn is just too expensive and provides much lower value than video games. They still buy computer games but its a one time $20 purchase with hundreds of hours of possible play. A trading card game can be fun but its an ongoing expense and a hassle to find players.

Another anecdote, we just got a new FLGS and they carry mostly miniature war games, The people I've seen buying and playing in store were playing Star Wars minis although I suspect that's a fad and it will be replaced with something else, warmachine or whatever is hot in a few months. At least though the money you spent has some artistic value, you can collect X wings or the Falcon or re-purpose miniatures for D&D . You cant resell, re-purpose or reuse apps

Now I kind of agree that D&D competes with the computer for time but I really don't think that it is the same market or hobby or that anyone really needs a ton of software or will buy it. WOTC would IMNSHO be much smarter in releasing a traditional mix of adventures and splat books in print and later PDF.

And I think Mearls is right and wrong on splat books. A lot of them don't get used but people actually enjoy reading about them and daydreaming about options and such. They may never play X,Y,or Zed splat but that doesn't matter, This sells books and the excitement moves product or at least that's the conventional wisdom

My fear is that this push for "bigger money" monetizing software and selling IP and ignoring the tabletop hobby will simply put D&D into a coma. Even with brand recognition, without new releases, the urge to play is smaller and expensive adventures which sell one per group if that aren't going to cut it. A lot of people like to DIY for their own game worlds and whatever stuff WOTC has this week may not cut it, Splat books OTOH are more adaptable.

That said I might be wrong and if so, hope they make a bundle. They just won't bet getting my money.

 

[Flexor the Mighty!]

I don't see spending anything on digital apps for D&D unless something is just mind blowing. But I'm pretty happy with the core game so I'm set other than maybe Dragon and Dungeon.