Games Workshop
Games Workshop used to be good. See Beakie, Rogue Trader and Talisman.
They started out making shit that you could use in other publishers games, and printing American RPGs up in jolly olde Angleterre. Soon they made a wargame and a few board games and people began to take them seriously as something other than a magazine publisher.
More about
It is a well kept secret that the Board of Directors of GW are in the same situation as the God-Emperor of Mankind from Warhammer 40,000. Their defiled corpse-bodies lay dormant upon their Publishing Thrones, maintaining only the smallest semblance of life due to the constant influx of money. It is unknown what would happen if the Board of Directors were allowed to truly die. Some say Games Workshop would collapse in on itself, ceasing the production of all that is good and expensive. Perhaps Games Workshop would be free from the necrotic collar of the Directors' irresistible will, and the company would be free to explore new areas, such as advancing the story of the Warhammer 40,000 universe, or reviving older "specialist" games like Space Hulk and Blood Bowl.
History
The Age of Munchkins
After the awesomeness of Rogue Trader at the dawn of time, Games Workshop came out with Warhammer Fantasy Battle and Warhammer 40,000, the latter normally called Second Edition. Both systems were built around small units of infantry supporting ridiculously munchkinized special characters with complicated rules and wargear and appropriately pricey lead models (Warhammer was often referred to as Herohammer because of this), but at this stage Games Workshop actually cared somewhat about customers; models were made in plastic or wallet-friendly, Roman-Empire-collapsing lead, game sets included serviceable army lists and collections of miniatures, and paints were provided in 20ml pots, later 17.5ml. This switch was perhaps the first sign of the next age.
At some point it was determined that the stock army lists weren't enough, and so Army Books (for Warhammer) and Codex Books (for 40K) began to come out, each bringing new models and rules into the game. The last round of these for 40K (Codex: Tyranids in particular) tended to make the army ridiculously overpowered and make everyone else want a new Codex to rectify the balance. Perhaps the ultimate example of Second Edition philosophy was the last book, Codex: Assassins, which consisted of nothing but four hideously powerful special characters. These included this asshole who caused the psychology effect Terror to all psykers, regardless of anything, meaning Greater Daemons and Hive Tyrants would occasionally shit themselves and run for the hills when faced with a normal-sized human.
One notable aspect of this period was that Games Workshop hated trees, and would thus include several million cards in every boxed set if given the slightest provocation; the core sets for Warhammer and Warhammer 40,000 both received an update governing the magic / psychic system which consisted solely of cards and templates (which were card). Some entire games (Doom of the Eldar, Battle for Armageddon, Horus Heresy) came out in this period which consisted of nothing but a board and lots of high-density card counters to lose down the back of the sofa or inside the dog.
The Age of Stealing Your Money
Sometime in the run-up to Third Edition it was decided that models should switch from toddler-murdering lead to safe, pointy pewter (or "white metal" as GW insisted on calling it). This led to a 25% cross-board increase in all metal mini costs, even those ordered through Citadel's back catalog. At this point, it seems, something clicked in the heads of GW's management; they had just made a ton more money without actually doing anything. Perhaps they could do that again.
Third Edition 40K and the new Warhammer soon came around, both reducing the dominance of single munchkin characters in favour of large armies, conveniently meaning players had to buy far more models. Then along came the fucking screw-tops, and proof that any pretense of caring about the customer had been cast aside.
The "problem" with the older paintpot designs was they actually kept paint usable for a long time; while the fliptops suffered from shit hinges and opening tabs which would both break after about four uses, they were good for years of storage. Obviously this was no good to GW, and so a new pot was designed which would gunk up its own thread and either glue itself shut forever or prevent an airtight seal forming after a couple of uses. Apparently not realising that any other company existed that made model paints, GW also raised the price of these new and terrible things; clearly justified, since they contained a mere 30% less paint than the old design. It was also around this point that photographs of the 'Eavy Metal studio started to vanish from the pages of White Dwarf (along with all other content that could be considered useful for anything at all) since they kept forgetting to hide all their non-Citadel gear for photoshoots, even though everyone had known for years that the painters didn't "mix Snot Green with a little Chaos Black" to get a shade that was in Tamiya or Vallejo's stock range.
Prices began to ramp up ridiculously as GW realised they could charge whatever the hell they liked and people would still pay; while GW was never particularly cheap, their chunky kits ended up in the same price bracket as top-quality scale miniatures by other companies; today, a Citadel Leman Russ (a 95-part kit entirely in plastic) costs about the same as a Dragon M1A2 Abrams (an 817-part multimedia kit including 98 in etched brass and a turned metal gun barrel). At some point, someone remembered that back in Second Edition days they actually had people willing to pay for gigantically expensive, limited-edition lead Thunderhawk Gunships. To hit this niche of "people with more money than sense," Forge World was created; all you had to do was get mom and dad to sign that second mortgage and stop being so damn selfish and a 40K scale Titan would be yours.
The Fall of Warhammer
It's finally fucking happened. As of May 11th, 2011, Games-Workshop's new terms of use restricts sales of all of their products to the European Economic Area, (EU + Norway, Switzerland and Iceland). Obviously, this means that GW's English-speaking customers outside the EEA - Canada, Australia, New Zealand, and the US, as well as customers in other countries who are fans of their products can no longer obtain them through FLGS or online wholesalers (Actually, I think this is incorrect. I believe it just means they can't order online from outside their country but needs reference). (It IS incorrect. It only applies to online stores. FLGS can continue to buy and sell GW products at their normal prices).
So enjoy spending 30-80 dollars on shipping for your order, which can no longer have free shipping for bulk, since you're now ordering international - if you can even order the fucking things at all in your region. Oh, and they spiked the prices another 10-15% for most models.
Additionally, all metal models are being discontinued, to be replaced with much more expensive Resin kits. Unlike the pewter kits (which are basically tin), the resin kits are loaded with carcinogens; strange, since last anyone checked the reason for switching to pewter in the first place was that lead was toxic (and nothing to do with hiking the price). And they are actually much, much cheaper to produce than the pewter models because plastic is a hell of a lot cheaper than metal. And they also break fairly easily so that all the little ten year old Smurf players have to buy new ones when they snap them in half. So essentially, Games Workshop not only ruined the quality of their models, they jacked up the prices and made it nearly impossible for anyone outside EU to obtain it. Kinda like going from fine French wine to your corner-store cheap beer.....and the beer is more expensive than the wine. Yes, we're also wondering how much more retarded GW can get.
Because Games-Workshop fucking hates you, about the only way this could be made worse is if GW decided to forcefully shove a RAPEX onto your dick each and every time you placed an order, and even that's debatable.
Games Workshop have sat pretty at the top of the miniature wargames shit-heap for many years and have abused this position to increase their own profits. However, fortunately for the long suffering gamer alternatives are emerging. Privateer Press for example produce the games Warmachine and Hordes and offers cheaper models and starter sets. In the market for wargames Privateer is rapidly emerging as a viable challenger to GW's monopoly.
Also worthy of note is Mantic Games who produce Kings of War, a fantasy battle game in a similar vein to Warhammer. The rules system was even written by former GW man Alessio Cavatore and its fast, fluid and a lot more fun than Warhammer. The company is pioneering the use of plastic-resin alloy (or 'restic') as a cost effective alternative to pewter. Oh, and equivalent plastic models cost about HALF what GW charge (e.g. GW High Elf Spearmen (16 models) - £20, Mantic Games Elf Spearmen (20 models) - £13.99).
One can only hope that these new upstarts will beat down GWs monopolistic hold on the wargame market.
Why Games Workshop is Bad and it Should Feel Bad
When speaking of a company, a person is tempted to think of a large body of human beings coming together in an efficient group. The group is governed, and it is thought that someone is there to ascertain the best possible choices are being made granted the information available at hand. However, this perspective, like most of 40k's explicit war “tactics”, is absolute nonsensical trash.
Never mind that large groups are often less efficient due to the fact that most people like to agree and be part of a group, even if the group is wrong. Forget that the burden of hard work is often shrugged off thanks to the assumption that everyone else will be carrying enough of the real challenges to pull things through. Instead, focus on the fact that the people heading GW – or most large corporations for that matter – are successful, rich, ordinary men who are blessed by good fortune in an unfair universe and probably don't realize the reality. Further, examine the knowledge that, according to Sun Tzu and a variety of psychological studies, successful rich people with the profound luck are the folks most likely to make stupid mistakes out of anyone!
Now you know why GW is run the way it is.
A source of some debate on /tg/ is whether or not GW is actually charging prices that make sense for the hobby. All logic points to a resounding “no”, but another interesting social phenomena is this: fanboyism is an inbuilt human process. Whenever money is spent on a good, especially a luxury item, man has a way of increasing the illusionary worth of that item.
Imagine buying tickets to see your local team play football, and they lose. It's not even a good game, to be honest. People around the country were disappointed. However, those tickets cost a lot of money, and having spent all that money for so little in return makes a person feel stupid. We grope for other things, then, to make the tickets worth while. Yes, it was cold, but your wife was there, so you bonded! The beer was too expensive as well, but they sold your favorite brand! You had an experience! It was fun! Yes, those tickets were worth it in the end.
We'll even do this with soft drinks. Even if brain probes reveal a man likes Pepsi more than Coke, going back and telling the man what he was drinking can actually alter his memory so that he remembers liking the Coke more. It's amazing.
GW products are exactly the same way. They're ludicrously expensive. Even people who support GW fervently wish they weren't. It hurts. In a rough economy, it's hard to play the game. You spend months, years – who knows how long waiting for that new codex, it turns out to be awful compared to expectations (hello, Tyranids!), and now you've either got to suck it up and keep playing (got to buy the new Trygons, I guess, even though they aren't that great), or take a huge monetary loss and give up. Fanboyism steps in and makes it all okay. You're not just buying the models, but the game and the network utility too, so 40k is still totally fun and cool!
Big corporations, and GW as well, are predators. They feast on fanboyism. Like the Dark Eldar, they prey on your suffering and write sick, stomach-turning poetry about the flowing, green streams of vital wealth they siphon from your being. You are a toy. That cute girl at the convenience store you see all the time? Thanks to GW, you have to choose between inviting her to the theater and buying that new squadron of Guardsmen. Those of you scoffing at the dilemma, shut up; those Guardsmen are not going to nag nearly as much after you've had them for a little while, so it's totally a tough call.
But putty in their hands you may be, there are still some principles of basic economics that imply GW might not be earning enough revenue, and surprisingly, they can only lose more money by raising prices! There's no way of knowing how things are without a look at the delicate, inner machinery they have to shoo Matt Ward's putrid, corrosive stench away from, but it does all come back to our first consideration: GW is run by the type of person most notable for making poor decisions – successful people, and a group, no less.
The situation is thus: there is more to money flow than just the bottom line, though often it's all we think of, but basically there's income, cost, and revenue. What is of most concern is revenue, which could also be thought of as profit. GW sells their models for a greater amount than what they cost, and the amount they make is revenue!
So now, there's revenue, and then there's marginal revenue. Revenue is just how much you make. Sell a thousand Guardsmen and make ten thousand dollars? Your Guardsmen revenue is $10,000! Marginal revenue, on the other hand, is how much you make per item. In this case, the Guardsmen have a marginal revenue of $10. Each Guardsman made a profit of $10. See? Easy.
Now let's raise prices. From now on, we'll sell half as many Guardsmen per box, and the boxes will cost the same. Now marginal revenue is $22, because every time a Guardsman is sold, we bring in $20 per Guardsman plus an additional $2 gets saved thanks to the Guardsmen we didn't make! This is cool – we're in business, just like GW, /tg/! Let's do that again – our customers are fans, they'll bare it! Now we'll sell five Guardsmen to a box, and we have a marginal revenue of $45!
Okay, wait, wait. I've got it. I'm a genius. Let's sell one Guardsman. Sell it for the same price we used to sell twenty of them! We're going to be rich! Marginal revenue is going to be amazing! Like, what, over a hundred dollars a purchase?
So what's our profit in the end? What! Negative? How!? We're making so much per model! The marginal revenue is so high!
The answer is simple. Not enough people are buying one crappy Guardsman for $200 dollars. A few of the fans are sticking it out, hating us relentlessly, but newcomers to the game see the price tag and run screaming. People who can't afford it leave because they have no other choice, but they're happy in retrospect. Even some of our most loyal customers finally decided to just date that girl after all – she's not nearly as pricey and they'll deal with her constant bitching. Actual revenue is at an all time low.
Believe it or not, companies really do make this mistake, albeit not to this extent (unless you check out Forge World, anyway. Anyone want a Tau Manta? Only costs more than $1,000). It's because maximizing marginal revenue is very easy. It's simple arithmetic, and if your market base is rather inelastic (and GW's market base certainly is due to the high investment requirements of their games), a lot of times price changes won't have a huge impact, so it's easier to focus on. GW is at some point in the middle here, where it has started to become questionable.
It's hard to say if they're making right decisions or if their pricing makes the most sense. It's becoming that their games are really a hobby of those with absurd disposable income, which is not a quality described of the young men who are presumed to make up 40k's primary demographic. It's possible that they're targeting young teens with parents who will buy the models for them, but that's hard to say as well since parents will lack the dedicated fanboyism to continually invest in the absurdly priced hobby.
Mix in unbalanced rules that unfairly favor certain factions, long wait times between army updates, inferior model quality compared to what's provided to model hobbyists outside of the wargaming industry, and GW may have a recipe for a failing market.
to do
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- add moar shit
- LOWER THEIR FUCKING PRICES!!!!!!!!!!!!!!!! YEAH ABOUT THAT...HAAHAHA FAGGOT
- Stop trying to monopolise things like terrain and game boards. It was a lot more fun and interesting when GW encouraged people to make their own stuff from scratch, but now they seem to think everyone has to have a Citadel Realm of Battle board and use only the plastic terrain kits that are sold at GW. This pisses off all us proper gamers who like to make things that look unique and original. Also, they really should stop selling those stupidly overpriced movement trays for warhammer, they're cheaper and easier to make using sheets of plasticard and trimmed down sprues! Also, everyone knows "Green Stuff" is "Kneadatite" and that every other company in existence sells it more cheaply than GW does.
- Stop charging ridiculous prices for cheap and nasty tools with the Citadel brand on them. The £20 novelty flamer airbrush is inferior in every meaningful way to a £5 Silverline. The Citadel Razor Saw with a fixed, low-quality blade costs more than a decent razor saw with interchangeable blades (hell, some places will hook you up with a Tamiya saw with two blades for £10). The "Citadel Hobby Vice" is utterly useless. People do not automatically come to GW for every single thing the hobby requires because they realise GW's idea of service is sticking its dick in their wallet and fucking their credit card to death.
- Update older armies like Necrons and Sisters of Battle instead of constantly updating all the space marines for chrissake - you'd have more people buying more armies! (Maybe GW just hates money?) I mean goddamn, how many flavors of smurfs can people possibly want?
- Progressively fewer, if the sales figures are any fucking indication.
- Update Necrons and Sisters of Battle? We know just the guy for that. DOHOHOHO!
- And it happened. The Necrons are now forever tainted by Matt Ward.
- Update Necrons and Sisters of Battle? We know just the guy for that. DOHOHOHO!
- Progressively fewer, if the sales figures are any fucking indication.
- Cut the production costs and therefore prices of their products. This is a good business decision as it would increase volume while retaining profit margins, especially considering the upcoming movie if it receives a theatrical release will bring in interested people. Lowering prices increases accessibility while also increasing demand, and when you have more customers buying shit at worst you suffer minimal profit loss if you decrease the prices by the right amount.
- Start advertising. Without the infamous "In the grim darkness of the 41st Millennium there is only WAR!" ad we never would have the term "grimdark". Also promote Warhammer Fantasy more. Without it there would have never been a Warhammer 40k in the first place.
- MOAR PLASTIC MODELS!!!!
- NOT LIKE THAT YOU MORONS!!!!
- KICK MATT WARD IN THE BALLS AND KICK HIM HARD
- FIRE MATT WARD IN THE PAYCHECK AND FIRE HIM HARD
In conclusion, FUCK YOU GAMES WORKSHOP!!!