Uzzy said:
Nothing has been done so far to take advantage of the new format, which leads me to believe that the change was pointless.
I don't agree with WotC's decision, but I do see a few points to it.
First and foremost, the use of the Dragon and Dungeon brand names to bring subscribers in to the new digital initiative. The names carry a lot of weight, so having those names put to use is imperitive.
Second, it cuts out the "competition." Why should WotC license their products out to other companies to use to make a profit when they can make the profit themselves? Granted, they did get licensing fees of some sort, but they must figure the profits they could generate would be greater. Also, why have dollars go to another company at all? Still, the costs would be minimal since they would have to pay freelancers for online articles anyway, and since they wouldn't have to deal with printing costs. More profit for WotC, less use of WotC's IP by other companies to draw dollars away.
What WotC didn't count on here was that Paizo would take the RPG world by storm with Pathfinder! So the competition still exists, and this is a good thing. Hopefully WotC will realize that they need to step up the game too.
I see WotC's decisions to create 4e and to use the Dragon and Dungeon brand names while killing the mags as a business decision. I don't agree with it, but I see some valid points from WotC's financial point of view. Competition is cut out, brand name integrity is improved (Book of Erotic Fantasy anyone?).
The fallbacks from WotC's point of view are potential new competition and splitting the fan base. While there will undoubtedly be more competition, nobody is as big of a powerhouse as WotC, and the D&D brand name carries so much weight that people will buy. While not all naysayers will buy 4th edition, a great many will. Plus, a new generation of gamers will be getting into the hobby as well.
So yeah, it's a sound business model, and though we may disagree with its implementation, there is little we can do about it save to vote with the almighty dollar and voice our opinions. While I am extremely saddened to see Dragon and Dungeon go, I will always have the memory of those two fine magazines with me.
The universe abhors a vacuum. As we have said goodbye to our old, dear friends, we have met new friends along the way. This too is good, and in those regards, the change has benefited the RPG industry.