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This is a question for those of you who watch GW's financials - does GW take a loss on rulebooks?

I've been considering the cost of the rulesbooks - rule design, internal testing, external testing, revision, further testing, final writing, proofreading, and translation, combined with the costs of doing high-end graphic design along with the cost of what new artwork goes into the books. Add into it the high cost of printing and shipping, and it seems likely to me that GW is taking a nasty loss on most of the books, excluding the most popular armies, which, if an edition can last long enough, might eventually turn a profit.

I know that GW has always taken a nasty loss on the boxed sets to bring in new players, does anyone know if GW loses money on rulebooks?

I'm bringing this up because of GW Japan's recent posting of rulebooks online for free - at first it didn't seem worth notice, because video games in Asia are often given away for free and involve high monthly subscriptions. But now I'm starting to wonder if, in an attempt to cut a nasty recurring loss, GW is planning to start distributing Codices online for free. This would make even more sense in light of GW's rumored plans to close many US stores, because the profit margin on books sold by third parties is probably several times lower than the margin on books sold at GW stores. It might also increase the efficiency of GW mail-order, as the mail-order trolls would end up answering far fewer rules questions because all players would have access to all rulebooks. Best of all, it becomes a great promotional tool - GW players could immediately introduce skeptical friends to the rules and a lot of fluff, not to mention the "advertising" generated by bored players sifting through rulebooks and getting motivated to buy more stuff.

Thoughts?

Remove "new artwork" from your list. It's not new and Blanche may or may not be an artist.

I'd guess the Japanese rulebook is too costly to translate and make for too little sales. Thus it's just easier to translate and create .pdfs.

Uh, GW most certainly does *not* take a nasty loss on boxed sets, even the new "cheap" beginner sets. The rest of their product line is so overpriced that it looks like they are "loss leaders" but GW's management is such that they would not and will not sell anything that they don't make a significant profit off of. This includes rulebooks. For items like the Exorcist, it's "Direct Order Only" is a cost saving measure, as shipping and the amount of casting (ie: time & labor) required drasticly reduce it's profitability and by reducing the sales channels for it, they can control those costs.

As far as free codices online at GW Japan: They are trying to break into a very, very crowded market where people can get better looking and prepainted figures at vending machines. By making the rules free, it gives people an incentive to try their (overpriced) product out in a land where modelling and gaming is even more widespread and prevalent than in GW's home in dear Old Blighty (the UK, if you don't already know, is probably the wargaming capital of the planet). But despite Japan's love of toys, GW hasn't even scratched the market. No doubt due to their bull headed attempts at pulling the same stunts they get away with in less crowded markets where they aren't the small fry they are.

Posted By nyarlathotep667 08/07/2006 12:09 AM
Uh, GW most certainly does *not* take a nasty loss on boxed sets, even the new "cheap" beginner sets. The rest of their product line is so overpriced that it looks like they are "loss leaders" but GW's management is such that they would not and will not sell anything that they don't make a significant profit off of. This includes rulebooks. For items like the Exorcist, it's "Direct Order Only" is a cost saving measure, as shipping and the amount of casting (ie: time & labor) required drasticly reduce it's profitability and by reducing the sales channels for it, they can control those costs.

As far as free codices online at GW Japan: They are trying to break into a very, very crowded market where people can get better looking and prepainted figures at vending machines. By making the rules free, it gives people an incentive to try their (overpriced) product out in a land where modelling and gaming is even more widespread and prevalent than in GW's home in dear Old Blighty (the UK, if you don't already know, is probably the wargaming capital of the planet). But despite Japan's love of toys, GW hasn't even scratched the market. No doubt due to their bull headed attempts at pulling the same stunts they get away with in less crowded markets where they aren't the small fry they are.

I think a lot of it has to do with space, namely the Japanese do not have a lot of it.  The last time I was in nippon all my friends wanted me too bring bookshelf games like Settlers of Catan, Panzer Blitz and Wooden Ships and Iron Men that take up little  or no space.  Despite being a "miniature" game Warhammer and 40K takes up a lot of storage and gameing space.  Card games were popular there too.

Ah, quite right, I forget just how much space is at a premium in the land of the setting sun. Probably because I've yet to travel there, though I've heard plenty second hand.

I've heard that it's so crowded there that there are no sexual harassment laws, as you can't move without touching three people's butts.

Mmmm, frotteurism! My favourite crime!

Except when it's your buttocks being squeezed...

"Except when it's your buttocks being squeezed... "

i thought _Jomi enjoyed that the most?

and i don't see GW "giving" anything away for free.

This would make even more sense in light of GW's rumored plans to close many US stores,

Not a rumor. They have plans to close some stores. The criteria for stores going away are 1) Not in one of the ten metro areas in the US that they are going to be concentrating on 2) The store is not making significant profit, or is losing money 3) The stores lease is up for renewal.

If it meets 1,2 and 3, or possibly even 1 and 3, then they will close that location. They will be opening stores in the metro areas over the next few years, as they have trained managers available (possibly from stores closed in other areas), and have good locations.

As for independents, they want to identify the stores in those metro areas that are doing a good job of selling GW, have gaming areas, and that they can form a good relationship with. (Call them Partnership stores, or Rogue Trader stores, whatever.) Ideally a metro area will have 3 to 5 GW stores, a similar number of partnership stores, and then other independents that may carry a portion of the line. The new GW stores that go into the area will be placed in areas without existing partnership stores.

People paying for codexes funds the free Japanese ones so they break into the market there. I work in the book industry, and can tell you that GWs books are massively overpriced compared to mainstream publishing, and there's no way they're losing money on them. Ditto your plastic sets with a few pennies-worth of plastic plus a bit of card, selling for £20+

They ain't daft...