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17 Jan
Posted by David Miller as Miniatures, Modern Board Games, War Games
On Thursday, Games Workshop released its Half-Yearly Report and the financial results were extremely disappointing. The company reported £60.5 million in revenue for the 6 months ending December 1, 2013, compared to £67.5 million for the same period the previous year. Earning per share fell a dramatic 31 percent, from 25.6p to 17.7p.
The report included the following statement from Tom Kirby, board chairman and acting CEO:
Our costs are well under control and margins remain strong.
Obviously then, sales volumes must be way off, a fact not at all surprising to gamers and independent retailers. Games Workshop’s customer base continues to suffer rising prices, poor product selection, heavy-handed legal measures, and reduced quality in print products, while at the same time having more alternatives available to them in the marketplace. Retailers too have had to deal with a number of measures that make it increasingly difficult for them to support Games Workshop’s products.
Immediately following the report’s release, the stock market took notice. Games Workshop’s share price dropped 24 percent in one day.
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Can’t say that I am surprised. Aren’t these the same people sending cease and desists to fans, and opening store fronts whenever your FLGS sells too much of their product?
Our brave new world can be a harsh mistress.
No surprise. They’ll be decimated when 3D printing gets even more mainstream. Their stuff is just overpriced.
This comes just after I heard some retailers talking about GW’s new policies, like splitting White Dwarf up to a weekly ‘zine (hopefully to draw people to stores on a weekly basis), despite bigger game stores ordering three copies of WD and “having some left over at the end of the month.”
Frankly given the times itself I am not surprised that GW made a loss of profit this time around especially when you think of all the new product that got released in that period including the launch of desolation of Smaug around Christmas an IP that costs them allot of money and is extremely Anal about its usage. As for the sales prices yeah its annoying they seem to be selling above inflation rates but It is a luxury good not a necessity. They could charge £100 for a box of space marines if they wanted to, and if you really wanted them you would still probably buy them Consumerism at its finest.
@Randy
Cease and desist orders are being sent to players and companies who are creating clones of GW models with the Intent to sell them, this created a huge internet flame war between online parties rising in defense of the small 3rd party companies who for some weird reason seemed un aware of copyright laws. (Most likely in defense of some of the kit they made as it some of it was pretty cool and they didn’t want to see it go.)
@ Nana
As for 3D printing its going to take a while before coming any where near the build quality of GW miniatures, sure you could build some tanks with it, but due to the sensitivity of the machine you would get hundreds of fault models making Injection molding still the more practical method of model production.
@ Thomas D
I cant really say either way on the weekly magazine, however I would assume its baseless rumor started as an Evil Empire what if! as for the sale of white dwarfs Alot of people have Tablets or direct subscription orders set up making buying a white dwarf on a monthly basis in store impractical to everyone but people like myself who pick it up when something looks interesting.
There are several good threads on the Cease and Desist that was sent to BGG. I find it off-putting and it changes my opinion of the company and will color the decisions I make in buying their product.
There are plenty of ways to protect IP, and many companies have seemed to survive just fine without clamping down the way they did in ’09.