Posted By Osbad on 04/05/2007 5:28 AM
Why does this matter?
Because if it is a declining market then its pretty much bad news for customers and there's not a lot that management can do to win as everything will result in lower profit. Consequently they have little incentive to innovate and develop, and every incentive to cut long-term costs.
On the other hand, if the market isn't declining much, but GW's woes are down to competition from the likes of PP, then its all wonderful for the consumer - competition rewards innovation and competitive pricing structures. Competition in a stable market is of great benefit to the consumer (us!)
As a consumer, I want to convince Games Workshop that their losses are a result of competition, so I can reap the benefits. If Games Workshop chooses to ignore companies like Privateer Press and believes that their losses are a consequence of a declining market, I agree that we'll probablly see very little innovation from GW.
We can continuing to encourage new players to the hobby, but we can't necessarily control the market. On the other hand, we can bring the competition to Games Workshop's attention. I'm inclined to contact GW's customer service everytime Privateer Press brings out a gorgeous model and asking, "When are you going to release something like that?"
What do you think it will take for Games Workshop to sit up and pay attention? They certainly noticed that their wallet is lighter, but I'm not certain they believe that competition is the reason.