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Sales woe for Games Workshop

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  • Member since
    January 2003
  • From: Upper left side of the lower Penninsula of Mich
Posted by dkmacin on Saturday, February 18, 2006 8:03 AM
Sort of Durr.
They forcast a profit and budgeted for that. . .even if the 'profit' was to go to the guys to live a lavish life style on the Isle of Wight, it was still budgeted. . .okay I'm not an economist and can't even spell it sometimes.
I think GW is finding that DEMAND is down, thus so are the Profits. Reasons for the lack of demand is as stated on these forums, which are reasons I began to see and hear about as far back as the 80's when I "discovered" GW.

Don


I know it's only rock and roll, but I like it.
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    July 2013
Posted by DURR on Monday, February 13, 2006 6:56 AM

they are not losing money they made a profit the article just says  they did not make the amount of profit they forcasted

this is what bugs me about businesses

example

general motors  let's say in 2002 made 10 million in profit

                                         in 2003 made 11 million in profit   

        now based on those figures the project (hope for) 2004 to make 12 million  but only make 11 million

" headlines "  GM LOSES 1 MILLION DOLLARS

where ? how?  they did not lose anything they still made 11 million PROFIT

on a smaaler scale that is what has happened to gw  their projected profits were not what they hoped for ---- not that they did not make any

  • Member since
    January 2006
Posted by Agamemnon on Friday, February 10, 2006 11:55 AM
The reasons you cited are very much to blame for the downward pointing trend, but GW has a lot of defective business practices to blame, as well. Role-playing games themselves are moving along relatively well, since they target a mature market these days, but miniature wargames are very much a threatened species, given the work commitment it takes to paint 20-80 dwarf axemen one at a time, or what have you.
Look at these people, these human beings; consider their potential! From the day they arrive on the planet, blinking, step into the sun, there is more to see than can ever be seen, more to do than... no, hold on. Sorry, that's The Lion King. But, the point still stands... leave them alone! -- The Tenth Doctor
  • Member since
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  • From: Warwick, RI
Posted by Kolschey on Friday, February 10, 2006 8:06 AM

There’s another factor at work here.

 Perhaps I should put this in a separate thread, insofar as it touches on several of the threads I’ve seen having to do with the apparent decline of the model/hobby industry.

A few years ago, I was helping a friend sort out some role playing games in preparation for a move. He lamented that the market had suffered a serious decline in the early nineties.

 I asked him the reason for this. His response was that kids just weren’t buying the stuff anymore- with the exception of the collectible Card games.

I found myself thinking about that. I was aware that the hobby and model sections of various stores like Kay Bee and Toys R US had also drastically cut back their stock. Whereas back in the eighties they had often dedicated the better part of an aisle to these materials, you will be lucky now to find ten square feet in any given store, if that.

 So what changed? Two major things.

 First of all, the younger generation doesn’t have as much free time.

 Kids these days are much more scheduled in their activities, and often have a substantial amount of school commitments and homework, and they often work part time in addition. Growing up myself in the seventies and eighties, I strongly suspect that I simply had more time to spend on various pursuits than the present generation.

 The other major factor however, is the development of far more immersive electronic media.

 The typical computer adventure game is far more complex than those made fifteen-twenty years ago. Indeed, even when one looks at a map of some of the fist generation Nintendo games like the Mario or Metroid adventures, you realize that these are entire complex landscapes and environments with all sorts of shortcuts, backdoors, traps, sublevels, and tangents. Indeed, the developers originally drew the original designs for some of these levels on huge rolls of butcher paper.

 And that’s just a typical Hop N’ Bop scrolling adventure...

 If you look at the level of problem solving, advanced physics, and resolution of a game like Half Life 2, some of the Star Wars games, or many of the other “shooters”, it becomes quickly apparent that you are dealing with entire WORLDS.

 Now add to this the role of multiplayer and customizability.

 What this allows for is both the ability to shape one’s environment, and to connect with other people.

One of the challenges growing up was that it could often be difficult to get together enough people for a campaign. Mike had to mow the lawn...Steve was visiting his grandparents in Florida, etc...

 Now, you can log onto a server at any hour of day or night. Even if Steve in Dallas is busy, there’s still Janet in Toronto, Brian in Phoenix, Glenn in Tennessee who are up and ready to play.

 The other huge change is that many of these new games do 90% of the heavy lifting when it comes to calculating variables- everything from character bonuses to combat- in near realtime speed. Furthermore, people now have the ability to continue to develop and modify these characters on their own time.

Indeed, in a sense, these virtual characters and environments are a new form of model building, albeit rather different from what we are accustomed to.

Honestly, it seems to me that much of the creative energy that was previously given to model building and role-playing hobbies has now been transferred to virtual environments in the new generation.

 Just my two cents.

 

 

 

 

 

Krzysztof Mathews http://www.firstgearterritories.com

  • Member since
    January 2006
Posted by Agamemnon on Friday, February 10, 2006 4:48 AM

Oh, those tanks, don't get me started on those tanks... "Detail" parts the size of my thumb, horrible flash, poor fits, looks that would've looked primitive next to an A7V or a Mk IV... The one good thing about them is that you can paint them precisely the way you want to, without having to look up references. Don't like the camo pattern? Make your own, there's plenty of space in the universe. Try doing that with a King Tiger...

Oh, and then there's the fact that I can drop my Chimera from chest height without permanent structural damage, but merely blowing on my StuG will break loose some components.

Look at these people, these human beings; consider their potential! From the day they arrive on the planet, blinking, step into the sun, there is more to see than can ever be seen, more to do than... no, hold on. Sorry, that's The Lion King. But, the point still stands... leave them alone! -- The Tenth Doctor
  • Member since
    June 2005
  • From: NJ 07073
Posted by archangel571 on Thursday, February 9, 2006 9:29 PM
I dropped 40K after GW dropped most pewter figures and started to opt for plastic yet still charged same if not more money for them.  I got into it back in highschool after helping a good buddie of mine painting some of his figures and started to like painting metal miniatures, likes those from reaper.  10 bucks per figure is just too much, let alone those $40 lousy quality plastic tanks.
-=Ryan=- Too many kits... so little free time. MadDocWorks
  • Member since
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  • From: phoenix
Posted by grandadjohn on Thursday, February 9, 2006 8:08 PM
Haven't followed them for 5 years now, but their prices kept going up and up. And with new rules every few years, it gets to be an expensive hobby.
  • Member since
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  • From: A Spartan in the Wolverine State
Posted by rjkplasticmod on Thursday, February 9, 2006 7:05 PM

I would regret their demise, but I've always felt their figures & kits were way overpriced for what you get.  I've never been a Gamer, but I enjoy painting a Fantasy Figure every now & then.  Since the demise of  Ral Partha, Mythril, Thunderbolt, etal., Reaper seems to be the best source for good quality Fantasy Figures at fairly reasonable cost.

Regards,  Rick

RICK At My Age, I've Seen It All, Done It All, But I Don't Remember It All...
  • Member since
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  • From: Nashotah, WI
Posted by Glamdring on Thursday, February 9, 2006 5:24 PM

 David Voss wrote:
The recent WH40K rulebook is like $50.  Consider that for something like HeroClix you can get into the game for between $10-20 it's much more attractive.  Then there's video games...
 

 

Same with the LOTR rulebook, $50.  The thing is I have heard there are several figures they forgot to put in the book, like the entire army of the dead.  Then they released the new supplements shortly thereafter.....

Robert 

"I can't get ahead no matter how hard I try, I'm gettin' really good at barely gettin' by"

  • Member since
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  • From: Waukesha, WI
Posted by David Voss on Thursday, February 9, 2006 10:58 AM
I'm no expert in this area, but based upon my uber comprehensive reading skills and observations it's a combination of the LotR line (no movies = dropping interest levels), loss of hobby shops due to many going out of business, high prices, and rising cost of living.  I've also read reports that the UK is experiencing a recession which may also account for loss of business over there -- like I said tho', I'm no economics expert so that may or not be true.

Something I have to give them credit for is that I read that all of their manufacturing is for the most part done in the UK and the US.  So considering that, there's no surprise the products continue to be expensive.  Good or bad, sounds like they're going to be looking for cheaper labor markets.  May be good for the consumer, but what about those current manufacturing jobs?

I've still been buying stuff off and on, but the majority of it's been from digging around in the 40% off bin, and sales.  Someday I may have enough to field a coherent army.  Wink [;)]

Perhaps that's what makes the WH40K skirmish rules and Mordenheim attractive (at least to me) is that you don't need a lot of figures to have fun.

Also considering things like the HeroClix, Mechwarrior, D&D Miniatures, and Axis&Allies Miniatures, the figures are prepainted (ready to play) and per figure don't cost as much.  The rules are pretty simple, not requiring multiple sourcebooks.  The recent WH40K rulebook is like $50.  Consider that for something like HeroClix you can get into the game for between $10-20 it's much more attractive.  Then there's video games...
 
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  • From: Toronto, Ontario, Canada
Posted by zokissima on Thursday, February 9, 2006 10:31 AM
Sad news to hear, but not surprising. Lately, I see less and less people gaming, and their prices are just way too high for such a niche market. Due to their prices, I have been out of it for the last two years, and don't see myself going back.
  • Member since
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  • From: Utereg
Posted by Borg R3-MC0 on Thursday, February 9, 2006 6:24 AM

What these guys need is a part 4 of LOTR! Big Smile [:D]

 

But I think there's going to be a Hobbit-movie (prequel to LOTR) so maybe they can makes some bucks there...

  • Member since
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  • From: Reno, NV
Posted by espins1 on Wednesday, February 8, 2006 9:48 PM
Welcome to the world of the "Product Cycle"!  LOL

Scott Espin - IPMS Reno High Rollers  Geeked My Reviews 

  • Member since
    February 2005
  • From: Nashotah, WI
Posted by Glamdring on Wednesday, February 8, 2006 8:21 PM

That's a shame, I certainly hope they don't fold since I love the LOTR line.  However  I tend to believe they have brought this on themselves.  Exhorbinant prices in a niche market leaves very little margin when demand dwindles and economies slow down.  I have to believe that this slow down has happened before and they can pull through it by trimming some of the company's fat and hopefully rejuvenate interest in their product lines. 

 

In the meantime, I hate to admit I will not be helping their profits anytime soon since  I can't afford them anymore.  Too many bills and not enough disposable income....

Robert 

"I can't get ahead no matter how hard I try, I'm gettin' really good at barely gettin' by"

  • Member since
    December 2002
  • From: Waukesha, WI
Sales woe for Games Workshop
Posted by David Voss on Wednesday, February 8, 2006 4:30 AM
Interesting news and discussion regarding Games Workshop:

[TMP] "Sales woe for Games Workshop" Topic (http://theminiaturespage.com/boards/msg.mv?id=62600)

It would seem that their business is being affected by the closing of LHS as well.

Games Workshop warns on full year
The situation has been made worse by the continued reduction in sales to independent toy and hobby retailers, notably in the US, it said, where many smaller independent operators are closing down.




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