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Recession and changes in the game market

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larienna
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Joined: 07/28/2008

Today, I had a chance to visit for the first and last time a game store called "gamer's world" here in montreal. It was making a closing sale where everything had between 30% and 50% rebate. This store sold boardgames, role playing games and video game.

A few weeks ago, my friend said that there was a serious drops of sale in the RPG market. He was designing RPG modules for some RPG system and I think he stopped because it seems that the RPG market is dying. His solution was that players should evolve to electronic distribution only. He even suggested that the character sheets and the board should all use electronic devices. Maybe one day it will be possible.

Now you might be asking why I exposed the 2 events above, well I seriously think that things are changing and the business model will have to change. I would not be surprise if giants in the RPG game industry dissapears. For board games it is less a threat since people still need physical components to play while for an RPG, a PDF book does pretty well the job. Still, it's just a matter of time until we get a flashable electronic board game, at a reasonable price and buy all our games electronically.

One of the problem is that there is no strictly board game retailers. (at least not in montreal). Stores that sell board games also sell RPG, puzzles, miniatures, esoteric stuff or even books (games sold in library). If RPG game stores disappears well, stores that sell board games other than monopoly disappears too. So it makes games less accessible which could reduce board game sales.

Even in the video game industry, PC video games are disappearing off the shelves. They now all focus on electronic distribution via impulse, steam and other software management system.

What is the cause of all these changes:

The recession? That could be the first idea I can think of. People focus their money on important needs and does not have spare cash to buy games.

The electronic format? The new electronic material available which is much cheaper than the material in store could be another reason.

What could be the impact of such changes:

- Will the people play more the game they already have rather than buying new ones? Could it kill the "cult of the new"? Could it increase the number of variants?

- Will the publisher produce less games? Could it increase the quality of the game?

- Will Print and Play sales raise like crazy? Could it replace physical board games?

what do you think?

guildofblades
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Joined: 07/28/2008
RPGs aren't dying. They are

RPGs aren't dying. They are simply diversifying. 4th Edition D&D is not the juggernaught that 3rd edition was and its not massively supported by the "industry" since Wizards did not offer as friendly a 3rd party contract to work with. White Wolf's new world of darkness is not nearly as well loved by WOD fans. Rifts is a tiny former shell of its former self.

I here a lot of retailers complain that RPGs are dying. Nope. Just the sales levels on the used-to-be staples of the RPG industry. Instead other lines have grown, but no one line has grown to become dominant to stand as a shinning example of RPGs success. But in our store we sell plenty of Conan, Traveller, Savage Worlds, Dark Heresy, Serenity, Shadowrun, Burning Wheel, Pathfinder, and Doctor Who. I also sell as much 2nd edition D&D as I do 4th, more used old world of darkness books than new world of darkness books, etc. Rifts sells well as used books, so doesa lot of D20 stuff, Twilight 2000 and some other game systems.

But you fear the "cult of the new" will die out? Maybe it should. The cult of the new, as I see it, took over game stores and the game industry so much that newly released games were forcing out existing ones at such a steady pace that many retailers gave up on the thought of stocking certain good games and products for them on an ongoing basis. Instead they would stock just core game books and then the latest sourcebooks or adventures, then give up trying to restock the books they just sold. That behavoir leads to so many problems for everyone I can't begin to express it.

Let the cult of the new die. Let the cult of the good and classic live.

As for digital distribution, it will continue to grow in market share for a while yet, but won't do away with physical books and games. Core books will trend to stay in print and sell better in that format and PDFs and such will tend to support adventures and certain accessories (character sheets, deck plans, etc, etc).

Thanks,
Ryan S. Johnson
Guild of Blades Retail Group - http://www.gobretail.com
Guild of Blades Publishing Group - http://www.guildofblades.com
1483 Online - http://www.1483online.com

dabuel
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Joined: 04/13/2010
and what about production costs...

interesting thread. I have also been thinking about this. Another question is the production costs in the future. A lot of the games that includes more fancy components are produced in China. In the coming 5-year period, China will most likely increase the value of their currency since it is very undervalued (and yes, the Chinese currency is not traded on the open market - its value is set by the Chinese government).
The effect of this will be that the production costs will go up.

Anyone knows how big part the production costs are of the total price, say for "Rune Wars".

Is there any other countries producing game components that has not as strong economy as China?

Willi B
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Joined: 07/28/2008
America... (rim shot)

I think that there will be more games produced in America if the Chinese decide to alter the situation. Right now, they know what they would lose and allow things to continue as is.

As far as RPG's go, I think anyone selling anything but the big sellers or locally requested items are not being responsible business people.

Everything can be scanned in paper formats. That is why 4E D&D tried to move electronic and Games Workshop's RPG tries to incorporate tokens, cards and specialized dice. So while RPG's aren't dead, they are not going to be good for local retailers.

Board games are doing fine. Online retail is the biggest threat to local hobby stores on this front.

The print and play community that feels nothing wrong with printing out the components to a board game they do not own is quite small, and the effort and time is about the same as buying the thing in the first place.

With the electronics finally getting close to what many gamers want in the iPad (space saving, cheap games and multiple usage), there is a disconnect for designers and publishers.... the low price point. Why buy Knizia's latest for $25 or $30 if you can buy the game app for $2.99? Granted, there is an extreme cost differential in production, but unless numbers spring up near the regular electronic games, there is going to be disappointment.

As for the saving grace of the friendly local game store, I say that the miniatures games are the horse I would back the strongest if I owned a FLGS. The hobbycraft of painting the minis added to the fact that 3D printing isn't nearly the threat of PDF printouts equals a stability factor that RPG's cannot offer the game store of today.

guildofblades
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Joined: 07/28/2008
Hi Willi, It would seem you

Hi Willi,

It would seem you have an opinion about RPGs already. But as a retail store owner and a publisher of RPG, Board games and such as well as PDFs, I believe I am positioned to see things fairly clearly.

Physical PRGs aren't on their way out. GOB Retail's first store opened just a year and a half ago and we sell more RPG content than board games and card games combined and its not for a lack of stocking a good variety of board and card games (we have nearly a 1000 unique board and card games in stock). The RPG market is simply very fragmented between systems and even within certain systems, between old and new editions. We have over 2000 new and used RPG books in stock and still have a LOT more unique titles that we hope to expand into our inventory.

I will not deny that the audience for PDF only versions of books has been growing, but at this time, its still very much a small minority compared to those who buy the print versions. Never mind also that stores like ours can take someone's PDF version of a book and print and bind it into soft covers, getting us past the theoreticaly day when the print versions aren't distributed well enough for stores to get access to them.

You see, we believe in the tangible and know that print versions of, well, everything, are here to stay. But for the smallest of game companies that electronic delivery will become a stronger draw as it is far more cost effective on the small scale. However, as we expand our POD capabilities, we eventually plan to be able to POD not just books and playing cards, but board games, plastic bits and parts and maybe even metal and plastic injection molded minis. It is our plan to take a completely digitally distributed set of game files for any format game and be able to produce it and make it available locally through our stores and others.

Print isn't dying. Just like RPGs is dyversifying and becoming more specialized. Spcialization usually comes at the cost of smaller production runs, which already short run game products can ill afford with the loss of price efficiency with current printing methods. All that means is the demand for alternative POD production methods will force evolutions in these technologies.

Thanks,
Ryan S. Johnson
Guild of Blades Retail Group - http://www.gobretail.com
Guild of Blades Publishing Group - http://www.guildofblades.com
1483 Online - http://www.1483online.com

larienna
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Quote:Never mind also that

Quote:
Never mind also that stores like ours can take someone's PDF version of a book and print and bind it into soft covers

That is one idea that some people anticipate in the future. The print on demand idea. You buy the PDF, go to a printer and get the book. Or even, you have a distribution machine that print a book on demand.

This concept could be extended to board games as well. You could have board game factories where you bring your PDF and they print the game for you on the right card stock and supply the right plastic pieces.

So instead of producing and shipping over the world. You ship the PDF over the world and you produce it locally.

I am still happy to learn that some store are surviving pretty well from RPG sales.

Dralius
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Joined: 07/26/2008
Willi B wrote: As far as

Willi B wrote:
As far as RPG's go, I think anyone selling anything but the big sellers or locally requested items are not being responsible business people.

Will B. - Can you clarify what you mean by this statement? Are you saying that carrying product from smaller producers is wrong in some way?

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