Storm Raven said:
As has been noted many times, "the gaming industry isn't". What you are talking about seems to me a recipe for gaming companies that are hobby businesses at best (as in, a hobby for those running them).
Aye, that's the financial reality for almost any games company in 2007.
There's one gaming company that's been financially well-run and consistently in the black since the 1980's, which is Games Workshop Group, Plc. And they don't rely on the sale of paper products or .pdfs; their niche is miniatures.
I believe it's true to say that almost all the others from the 1980's were atrociously poorly run from a financial point of view, either then or during the bad years of the 1990's, and a surprising number of them have gone to the wall. Nowadays, people are (unsurprisingly) reluctant to give up their day jobs.
The big secret is, gamers don't need paper products/pdf's. I think almost any visitor to this board could devise a simple RPG and play it for fun. So you have to keep prices very affordable, which makes it challenging to develop a quality product on a commercially viable basis.
But the other side of the coin is, a lot of us write* for pleasure rather than as a business. Given that we'd write anyway, why not sell it for a couple bucks?
*This is a lie. I don't write for pleasure; actually I hate writing. What I love is
having written. The book with my name on the cover is the reward.
