WotCs early days, and saving D&D

[Mercurius]

This suggests an interesting hypothesis: D&D (and, yes, I'm including Pathfinder here) does better with a small company/start-up mentality. Early TSR, WoTC and now Paizo. Assuming the hypothesis is correct, why would that be? Is D&D just not "big" enough for a corporate mentality? Is it because D&D is made for outsiders it needs to be made by outsiders?

Interesting? Sure. Surprising? Not really. Call me a grouchy aging liberal, but this is rather typical of what happens when a small company grows (too) large: the focus turns away from what the company was originally designed to support towards making more money. Not always, but usually.

About 15 years ago I worked at a health food store called Nature's in Portland, OR. It was started by a rather idealistic group of hippy boomers in the early 80s (I think). They got big quickly and expanded to half a dozen stores or more in the Portland metropolitan area. Then they decided to let themselves be bought by GNC, who promised that they would retain full operating control. The idea was that they would have more money to play with, but under the protective umbrella of a larger corporation. About a year later, GNC turned around and sold Nature's to Wild Oats (which used to be the main competitor with Whole Foods, but was bought out by Whole Foods about five years ago). Wild Oats immediately turned all of the Nature's stores into Wild Oats stores and, suffice it to say, the original owners of Nature's were quite upset and most quit. Shortly after they started up a new company called New Seasons Market, which now has about a dozen stores or so in Portland and other areas in Oregon and is thriving.

This is one anecdote but it happens time and time again: A group of idealists and/or creative types forms a company, which flourishes for a period of time of rapid growth and development. Then some kind of plateau is reached, perhaps the maximum growth within the constraints of a smallish company. At some point a "real business person" hired, which often leads to a buyout or selling of the company, etc, which brings the company to a new level of economic viability. It is around this time that something happens - the bottom line of the company changes, from the product itself, its artistic development, to making money.

That is the "American Way," for better or worse. I am not saying that art and idealism on one hand, and making money on the other, are mutually exclusive, but it is a matter of what the focus is, what the bottom line is, or perhaps more accurately, to what degree profit margin is the bottom line.

 

[billd91]

No comment on the rest, but doesn't anyone else remember that the "traditional Christmas layoffs" are a WotC 'tradition' (more like an occasional habit) that not only predates Hasbro's acquisition of WotC, but WotC's acquisition of TSR?

I have no idea. I don't believe I had heard anything about WotC layoffs before 1997 (TSR acquisition) or 1999 (acquisition by Hasbro). If you've got the data, dish it up.

EDIT: I can find references to a big one in 2002, and maybe 2001 and a big one in 2000. There's a lot of reference to the faddish expansion and contraction of the collectible card games (particularly Pokemon). Is that what you're getting at?

 

[PaizoCEO]

Hey y'all:

A very fun trip down memory lane. Pretty much everything in Peter's reminiscing is true (to the best of my recollection) except for the reason why I left White Wolf. It had nothing to do with the corporate structure. I would have been perfectly happy being a part of the White Wolf team for years to come. I am very loyal in that way.

The main reason I left White Wolf was a personality conflict that made it untenable for me to remain there. It came to a head right before my trip to Seattle to go on vacation. Because it was clear I wasn't wanted at White Wolf any longer, Peter put the full court press on me when I flew to Seattle. Of course, if I was going to move to Seattle and start a game company all over again, I was going to have some flesh in the game. Which is why Peter probably thought that was why I left White Wolf.

The key selling point in the conversation that won me over was when Peter told me that his life goal was to make millionaires out of his friends. I smiled a big smile and said, "I want to be your friend, Peter!" And Peter delivered on his promise.

-Lisa

 

[wedgeski]

Did you read everything Rick wrote on Grognard? I didn't say strategies should be in a contract. And what did you hear Tuesday?

I was responding to the section of quote from Rick you emboldened in your earlier post: "Central to this was the idea that Wizards's strategies had been successful, so they would be kept. This was not stated in writing in the purchase agreement..." I found the idea that you could somehow enshrine such a thing in a contract to be a bit absurd.

(As for the Tuesday thing, I won't re-post it here, it's too ridiculous for that.)

 

[Gentlegamer]

This is one anecdote but it happens time and time again: A group of idealists and/or creative types forms a company, which flourishes for a period of time of rapid growth and development. Then some kind of plateau is reached, perhaps the maximum growth within the constraints of a smallish company. At some point a "real business person" hired, which often leads to a buyout or selling of the company, etc, which brings the company to a new level of economic viability. It is around this time that something happens - the bottom line of the company changes, from the product itself, its artistic development, to making money.

Sounds almost exactly like TSR . . . of the early 80s. The Blume Brothers boxed out Gary, brought in Lorraine Williams (who was initially helpful), then finally forced Gary out, and ran the company into the ground.

 

[jmucchiello]

I was responding to the section of quote from Rick you emboldened in your earlier post: "Central to this was the idea that Wizards's strategies had been successful, so they would be kept. This was not stated in writing in the purchase agreement..." I found the idea that you could somehow enshrine such a thing in a contract to be a bit absurd.

Ah, I made a lazy "this". Gotcha.

(As for the Tuesday thing, I won't re-post it here, it's too ridiculous for that.)

I was kidding about that.

 

[mudbunny]

Hey y'all:

A very fun trip down memory lane.

Thanks Lisa. Your comments are much appreciated.

You know what would be just awesome!! A series of blog posts about what you have learned from being around at the start of not one, but two world-class RPG companies.

 

[PaizoCEO]

Thanks Lisa. Your comments are much appreciated.

You know what would be just awesome!! A series of blog posts about what you have learned from being around at the start of not one, but two world-class RPG companies.

Only two? I count three. White Wolf. Wizards of the Coast. Paizo. Unless, of course, you don't count one of those three as a world-class RPG company.

-Lisa

 

[Alzrius]

Only two? I count three. White Wolf. Wizards of the Coast. Paizo. Unless, of course, you don't count one of those three as a world-class RPG company.

-Lisa

I think he may have been discounting White Wolf, since they seem to be making their exit from the RPG scene.

 

[mudbunny]

Only two? I count three. White Wolf. Wizards of the Coast. Paizo. Unless, of course, you don't count one of those three as a world-class RPG company.

-Lisa

I knew that you were around for the start of WotC and Paizo, but I didn't realize that you were around for the start of WW as well.

Holy crap!!

I am not sure that there are any people around, not just in the RPG sphere, but in any sphere, where one person has been in on the ground floor of 3 separate companies that have had such dramatic influences upon their sphere of business.