Profit warning hits Games Workshop

[Kanegrundar]

I was talking to shop owner this weekend and he was talking about the crap GW was dealing him before he simply told them to shove off. He was going to have to put in an order of $750 every two weeks in order to continue being an official GW dealer. He *maybe* does $250 of GW sales in a month (and he admitted that even that was dwindling in the face of Warmachine, MageKnight, and D&D Minis). He told his GW agent (who, as it so happens, got sick of GW's business practices and quit not long after) that he was going to start special ordering through a middle-man distributor.

The shame is GW is re-releasing several games (Talisman, Necromunda, and a couple others, though Warhammer Quest, my favorite, isn't on the list), but they are making them available only through GW Mail-Order. To heck with that. I've dealt with GW directly a couple times in the past, and have yet to have something go wrong with EVERY order. Good thing Fantasy Flight Games has an excellent line-up of fantasy board games to feed my love of a good board game!

Kane

 

[JVisgaitis]

Just trying to get a grasp of the industry and GW's relative strategy within it. Using ye olde Porter's "five forces" model for corporate strategy, alternative products are a major factor that must be considered. Why are they successful when there are so many attractive competetors/alternative products around? The controversial yet effecitve distribution lock they have?

If you ask me, I don't think there are a lot of alternative products around in that market. You have War Machine from what I hear is really good, and you have Confrontation that delivers the best miniatures in the business, but isn't nearly as realized on US shores. The thing is, GW has a lock because they are so big and they do have a great team of creative people and great product design.

Love or hate them, you really can't knock the fun of their games or the network of people they have created. If you ever get a chance, go to one of their Gamesday events. You'll see what I mean. Totally great show and shows that cater to miniature painters, terrain builders, and wargamers aren't easy to come by outside of Gamesday. As to their distribution lock, I still don't understand how they can get away with that.

I recently switched to Vallejo paints. I haven't looked back.

I got the new full paint set for my birthday. Haven't tried them out yet, but I hear good things.

 

[Vraille Darkfang]

My GW Experiences:

Fantasy Novels: I started collecting the Black Library Novels after I got sick of how DL kept to the Divinty Hokey-Pokey (Ya put your divine self in, you take your divine self out, then you do the divine hokey-pokey & shake your clerics all about). I like them & continue to read them.

Paints, got one pot when my wife needed some flesh colored. Lasted 3 months before it dried out.

Miniatures; almost bought some when they were in the bargain bin at 50% off. Noticed I could get the same thing from Reaper with better detail and STILL les price.

Looked at cool Middle Earth Minis. Too much money compared to what's out there.

Bought several IK & Reaper Warlord cause they looked cool & were NOT riduclously expensive. Might even pick up the rulebooks sometime (got a good warlord dwarf or lizardman army already).

As long as I can pick up 2 METAL, more detailed minis for what I can buy 1 PLASTIC Warhammer fig..... Well, let's say I ain't buying.

Like Warhammer, just better options for my disposable income out there.

 

[Numenorean]

Three things for GW:

1. Lower your prices. Part of this decline of profits is natural market activity. People are not buying your products because they are too expensive. I can't tell you how many times I have heard this line from other gamers. Gamer's are not buying like they were because you are gouging your customers.

2. Go back to making miniature lines for fantasy RPGs. GW minis have a certain look and feel. IMO they crush WOTC's plastic garbage. Start making fantasy line minis for RPGS such as D&D. People would buy. Give Reaper a run for their money. It would help your bottom line.

3. The shrinking value of the dollar probably did play some role. Not the main reason, I feel #1 is the main reason, however I'm sure it played a role.

Thats my .02pp

 

[Falkus]

Maybe the prices are high, but so what? It's a one time investement. You get all the minatures your army needs, you're done with them, you never have to buy anything ever again except for replacements.

 

[Staffan]

Maybe the prices are high, but so what? It's a one time investement. You get all the minatures your army needs, you're done with them, you never have to buy anything ever again except for replacements.

At least until they publish a new edition of the game in a year or three, rendering some of your old minis (likely the more expensive ones, like special characters and vehicles) obsolete.

 

[KenM]

At least until they publish a new edition of the game in a year or three, rendering some of your old minis (likely the more expensive ones, like special characters and vehicles) obsolete.

Thats only if you play in offical GW tounements. Most games stores that run GW games that I have been to don't say "you need the most current version of the mini to play it".

 

[Pip-Boy 2000]

For the cost of a full set of paints, brushes, the rulebook(s), terrain, and an army of figures and vehicles, you could buy a new computer. Not a monster gaming machine, but still. The biggest vehicles run over $100. Probably some run up to $200, but I haven't checked in a while.

The price is a little steep. Also, Games Workshop declared a couple years ago that they would no longer sell stuff online, and that ticked me off.

 

[Lars Porsenna]

I don't recall any vehicles costing $100+.

I think one of the things RPG gamers tend to overlook about miniatures games is that the main focus of the game is not the game itself, but the miniatures. IMHO, if you don't want to make the investment or paint the figures or do the terrain, then you probably shouldn't be playing minis games. When I play a minis game, I like to sit back in the middle of a turn and look at the battle. At this point (really at any point) it should look like a mini-diorama, like a model of a battle in progress. And that's one of the big draws (for me, and other minis gamers I talk to); its the spectacle of the thing, it just looks cool.

As for using "obsoleted" figures and characters, if you are playing in a home game and understand the rules and pricing mechanics enough, and your opponent agrees, its not too hard to price out and use older, "obsoleted" figures. I think there's too much focus anymore on the GW tournament scene. I have FAR more fun playing a casual game with some friends, where I can talk about stuff, and not worry about minutiae that'll make my army the "killingest."

Damon.

 

[Falkus]

At least until they publish a new edition of the game in a year or three, rendering some of your old minis (likely the more expensive ones, like special characters and vehicles) obsolete.

Wrong person to talk to. I play Tau, I wish to god they'd come out with something new for my army.

The biggest vehicles run over $100. Probably some run up to $200, but I haven't checked in a while.

Only if you're buying from forgeworld, and only people with more dollars than sense buy from forgeworld.

its the spectacle of the thing, it just looks cool.

Ditto.