Menu
News
All News
Dungeons & Dragons
Level Up: Advanced 5th Edition
Pathfinder
Starfinder
Warhammer
2d20 System
Year Zero Engine
Industry News
Reviews
Dragon Reflections
White Dwarf Reflections
Columns
Weekly Digests
Weekly News Digest
Freebies, Sales & Bundles
RPG Print News
RPG Crowdfunding News
Game Content
ENterplanetary DimENsions
Mythological Figures
Opinion
Worlds of Design
Peregrine's Nest
RPG Evolution
Other Columns
From the Freelancing Frontline
Monster ENcyclopedia
WotC/TSR Alumni Look Back
4 Hours w/RSD (Ryan Dancey)
The Road to 3E (Jonathan Tweet)
Greenwood's Realms (Ed Greenwood)
Drawmij's TSR (Jim Ward)
Community
Forums & Topics
Forum List
Latest Posts
Forum list
*Dungeons & Dragons
Level Up: Advanced 5th Edition
D&D Older Editions, OSR, & D&D Variants
*TTRPGs General
*Pathfinder & Starfinder
EN Publishing
*Geek Talk & Media
Search forums
Chat/Discord
Resources
Wiki
Pages
Latest activity
Media
New media
New comments
Search media
Downloads
Latest reviews
Search resources
EN Publishing
Store
EN5ider
Adventures in ZEITGEIST
Awfully Cheerful Engine
What's OLD is NEW
Judge Dredd & The Worlds Of 2000AD
War of the Burning Sky
Level Up: Advanced 5E
Events & Releases
Upcoming Events
Private Events
Featured Events
Socials!
EN Publishing
Twitter
BlueSky
Facebook
Instagram
EN World
BlueSky
YouTube
Facebook
Twitter
Twitch
Podcast
Features
Top 5 RPGs Compiled Charts 2004-Present
Adventure Game Industry Market Research Summary (RPGs) V1.0
Ryan Dancey: Acquiring TSR
Q&A With Gary Gygax
D&D Rules FAQs
TSR, WotC, & Paizo: A Comparative History
D&D Pronunciation Guide
Million Dollar TTRPG Kickstarters
Tabletop RPG Podcast Hall of Fame
Eric Noah's Unofficial D&D 3rd Edition News
D&D in the Mainstream
D&D & RPG History
About Morrus
Log in
Register
What's new
Search
Search
Search titles only
By:
Forums & Topics
Forum List
Latest Posts
Forum list
*Dungeons & Dragons
Level Up: Advanced 5th Edition
D&D Older Editions, OSR, & D&D Variants
*TTRPGs General
*Pathfinder & Starfinder
EN Publishing
*Geek Talk & Media
Search forums
Chat/Discord
Menu
Log in
Register
Install the app
Install
Upgrade your account to a Community Supporter account and remove most of the site ads.
Community
General Tabletop Discussion
*Pathfinder & Starfinder
Will 2011 be the last year of Wizards D&D?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="AbdulAlhazred" data-source="post: 5404383" data-attributes="member: 82106"><p>I know it is all fashionable to talk about 'corporate monstrosities' but lets remember one key fact here. The RPG hobby is not exactly a font of money. ANY sane objective business analysis of this business will tell you in 5 minutes that if you want to make a high ROI you should get the heck out of it and say buy tobacco stock or maybe just take your money and go drill for oil.</p><p></p><p>Why then does WotC continue to put significant resources into D&D? I would suspect there are a few different reasons. Some of them are business reasons, but some of them aren't, or at least they are pretty intangible. One basic business reason that is pretty relevant is just that sunk costs are sunk. WotC presumably bought TSR's assets for a price so low that it DID make business sense for them. Sure the RPG industry isn't a great place to make money, but D&D itself at some price was still a decent investment for them at that time and place. Once you own it the price is irrelevant. All that matters is "If I put in $1 can I get out enough more than that in a short enough time frame with a low enough risk to make a decent ROI on that $1?" Why is this an interesting fact to keep in mind? Because it tells us that the D&D product line of WotC, if it is self-sufficient, that is makes enough money to return a profit and make the necessary investments in its own future, will continue to exist. </p><p></p><p>Now maybe Hasbro would sell it. Surely they would if they could get a good enough price and put the money into something else, but who out there has the money to buy D&D at a price that is worth bothering? It costs money to make such a sale, and if you have a product that makes money and potential buyers that can only pay peanuts (and there's no other game company out there with ANY significant money to invest) then just keep it and run it. Heck, maybe it will make a big hit. If it tanks so what? You already spent the money for it, there's no getting it back. It only makes sense to shut it down if it actually LOSES money.</p><p></p><p>Beyond that though look at the other motivations. They may not mean much to Hasbro, but the people running this business obviously WANT, for reasons not related to money, to keep making games. They have an actual love of games. This is what they do, and what they want to do. That isn't soulless. </p><p></p><p>Note also that all of this indicates to me that the D&D product line is profitable and self-sufficient. For all we know it is highly profitable. With absolutely no other facts to go on except the product continues to exist and invest in its future the weight of evidence is entirely in favor of the hypothesis that it makes enough money to worth more than the peanuts it could sell for. Frankly as long as people with a decent business sense are running it I think it is pretty safe. TSR didn't tank because they had a product that couldn't make a profit. They tanked because they didn't know how to run a business. Hasbro DEFINITELY knows how to do that.</p></blockquote><p></p>
[QUOTE="AbdulAlhazred, post: 5404383, member: 82106"] I know it is all fashionable to talk about 'corporate monstrosities' but lets remember one key fact here. The RPG hobby is not exactly a font of money. ANY sane objective business analysis of this business will tell you in 5 minutes that if you want to make a high ROI you should get the heck out of it and say buy tobacco stock or maybe just take your money and go drill for oil. Why then does WotC continue to put significant resources into D&D? I would suspect there are a few different reasons. Some of them are business reasons, but some of them aren't, or at least they are pretty intangible. One basic business reason that is pretty relevant is just that sunk costs are sunk. WotC presumably bought TSR's assets for a price so low that it DID make business sense for them. Sure the RPG industry isn't a great place to make money, but D&D itself at some price was still a decent investment for them at that time and place. Once you own it the price is irrelevant. All that matters is "If I put in $1 can I get out enough more than that in a short enough time frame with a low enough risk to make a decent ROI on that $1?" Why is this an interesting fact to keep in mind? Because it tells us that the D&D product line of WotC, if it is self-sufficient, that is makes enough money to return a profit and make the necessary investments in its own future, will continue to exist. Now maybe Hasbro would sell it. Surely they would if they could get a good enough price and put the money into something else, but who out there has the money to buy D&D at a price that is worth bothering? It costs money to make such a sale, and if you have a product that makes money and potential buyers that can only pay peanuts (and there's no other game company out there with ANY significant money to invest) then just keep it and run it. Heck, maybe it will make a big hit. If it tanks so what? You already spent the money for it, there's no getting it back. It only makes sense to shut it down if it actually LOSES money. Beyond that though look at the other motivations. They may not mean much to Hasbro, but the people running this business obviously WANT, for reasons not related to money, to keep making games. They have an actual love of games. This is what they do, and what they want to do. That isn't soulless. Note also that all of this indicates to me that the D&D product line is profitable and self-sufficient. For all we know it is highly profitable. With absolutely no other facts to go on except the product continues to exist and invest in its future the weight of evidence is entirely in favor of the hypothesis that it makes enough money to worth more than the peanuts it could sell for. Frankly as long as people with a decent business sense are running it I think it is pretty safe. TSR didn't tank because they had a product that couldn't make a profit. They tanked because they didn't know how to run a business. Hasbro DEFINITELY knows how to do that. [/QUOTE]
Insert quotes…
Verification
Post reply
Community
General Tabletop Discussion
*Pathfinder & Starfinder
Will 2011 be the last year of Wizards D&D?
Top