Thornir Alekeg said:
The market may not be dying as such, but if these kinds of price points become the norm, the market will not expand.
The "Future of the Gaming Industry" panel at Gen Con Indy last year suggested that the opposite was true; price points rise because the market shrinks. The argument that the overall RPG market is shrinking, as the average age of gamers increases and new ones aren't coming in to replace the old, remains controversial; see
my summary & discussion of the panel here.
Kenneth Hite said that one of the ways that publishers in other niches survive in shrinking markets is to sell luxury-priced items to fewer people, since there's no longer enough of a mass market to make it profitable to sell things at a price everyone can afford. One could argue that the publishers of the products JoeGKushner mentioned took this idea to heart!
What Behemoth3 is doing with Otherworld Excursions is, at one level, the same thing: trying to stay afloat by offering an expensive thing to a very small number of people. The important difference is that what we're selling is an experience -- and the continuing growth of Gen Con argues that the number of people willing to pay for a sit-down-and-play RPG session is increasing even as the number of people buying do-it-yourself-at-home RPG materials may be shrinking.
Another thing that might be poised to kill the market is unauthorized sharing of RPG materials. I'm the next-to-last person in the world to indulge in piracy hysteria; I was glad to see that people cared enough about
Maze of the Minotaur to put it up on file-sharing services (especially since almost half of the people who got a free download of it, or any of our books, through the server drive didn't bother; nothing's worse than feeling like you can't even
give your creations away!)
But in the music industry, artists can survive not getting paid for some downloads of their work by using this as free advertising for their concerts; in many cases, live performance has always been the mainstay of their income, with the revenue from publishing being relatively small potatoes.
It might be that as long as the RPG industry is dependent on publishing, and there aren't ways for artists to get paid for live performance, piracy is a much more serious problem than it is for musicians. The Otherworld Excursions tours are an attempt to create the RPG equivalent of a concert: a chance to see the masters of our art form doing their thing live, and to take part in an experience that can't be shared or traded; you have to be there.