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<blockquote data-quote="SemperJase" data-source="post: 568788" data-attributes="member: 1824"><p>While I agree with the conclusion, I just don't understand the analysis. </p><p></p><p></p><p></p><p>Well it makes sense that you can expand your business if you control the means of production as well as the means of distribution (in theory anyway). That is why it sounded like a good idea. They had the resources to do it right as well. Make the stores a destination. Attract groups of people who will linger in the store to play your games so they will have more exposure to your inventory and make more purchases. It just doesn't work in practice (at least not enough to make the investment worthwhile).</p><p></p><p></p><p></p><p>I was not aware that GW had their own retail outlets. Now assuming they do, how can they make it selling only their own line? I mean D&D is the best selling game by far. If GW could make it selling only their own stuff, then the industry leader would surely have an edge in stocking only their own products. But, this point seems to stem from an incorrect statement as GW does not mention the existence of any retail bricks and mortar shops on their web site. </p><p></p><p>The fact seems to be that gaming stores just are not financially successful. You are right, they are labors of love. From a business view, you need more revenue to make a store profitable than just gaming materials can provide.</p><p></p><p>WotC will get out of the retail business as I see it because it isn't profitable, not because their business plan was inferior to GW's.</p></blockquote><p></p>
[QUOTE="SemperJase, post: 568788, member: 1824"] While I agree with the conclusion, I just don't understand the analysis. Well it makes sense that you can expand your business if you control the means of production as well as the means of distribution (in theory anyway). That is why it sounded like a good idea. They had the resources to do it right as well. Make the stores a destination. Attract groups of people who will linger in the store to play your games so they will have more exposure to your inventory and make more purchases. It just doesn't work in practice (at least not enough to make the investment worthwhile). I was not aware that GW had their own retail outlets. Now assuming they do, how can they make it selling only their own line? I mean D&D is the best selling game by far. If GW could make it selling only their own stuff, then the industry leader would surely have an edge in stocking only their own products. But, this point seems to stem from an incorrect statement as GW does not mention the existence of any retail bricks and mortar shops on their web site. The fact seems to be that gaming stores just are not financially successful. You are right, they are labors of love. From a business view, you need more revenue to make a store profitable than just gaming materials can provide. WotC will get out of the retail business as I see it because it isn't profitable, not because their business plan was inferior to GW's. [/QUOTE]
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