Hiram wrote:From wotc's perspective though, why wouldn't you slash overhead, outsource adventures and splats, and collect checks from movie and videogame licensing? I'm sure that Green Ronin who produced the Sword Coast Adventurer's Guide paid something for the privilege of publishing a splat that everyone is going to reflexively buy (I did afterall).
If Green Ronin can make money paying for writers, artists, printing
and a licensing fee to make an official 5e D&D book, then WotC could make more money paying all those costs except not the licensing fee to make the same book. In fact, they could make exactly as much money as they are currently making on licensing fees plus however much Green Ronin is making as final profit plus they'd save a bit of change by not having to hire people on both ends to negotiate the licensing deal in the first place. The total take home profit for WotC is definitionally less doing it this way than it is making things in-house.
There are only a couple reasons why this would make sense. The first is if WotC doesn't have confidence that Emo Manchildren of the Swordcoast or whatever is going to make money at all. If they think there's a substantial chance that any particular book is going to bomb, thena risk adverse company might choose to take some licensing fees up front and let other companies take that risk.
The second is if the D&D department lacks capitalization. If they simply cannot afford the up-front costs to hire writers and artists and printers and shit to get books out the door, they could let other companies make the books and put up the capital to et those things started and accept that whatever licensing fees they are getting is infinity times more than the zero dollars they'd be getting by not being able to make any products at all.
The third is if the other companies have less constraints about paying wages to content producers and can actually pay less money for writers than WotC can. If Green Ronin has the market flexibility to screw their freelancers harder than WotC could, the two companies together could split a bigger profit pie.
And the fourth is if there's a giant grift going on, where Mike Mearls is putting the costs of production in a place where WotC's management can't see the books.
The truth is probably a little of all of those. Hasbro was seriously burned by the spectacular failure of 4th edition D&D, so it's well possible that WotC simply isn't given much of an operating budget to make D&D things. And similarly, Hasbro big brass probably is acutely aware that D&D products can have sales that are catastrophically terribad and could well be overestimating that chance. Hasbro is a real company that has shareholder meetings and shit and has to follow federal labor law, while Green Ronin is a fly by night imprint run by Chris Pramas. And of course the last part is given credence by the fact that literally all of the 5e supplements have been made under contracts awarded to people who have already been laid off from WotC in ages past. So in a very real way, every single contracted book for 5e thus far has acted to funnel money to people who used to work for the company but currentyly no longer do in any direct official capacity.
-Username17