> The short answer: No freaking way.

Which, in my opinion, is a damn shame for them.  I really think that without some kind 
of innovative move on the part of DOJ, Silver Age Sentinels from GOO will crush them.  
(Not that I'm rooting against GOO, mind you - I just think that trying to revive 
something as out-of-step with modern gaming tastes as Champions is going to be a 
herculean task and DOJ needs all the help it can possibly get).  Opening the HERO 
System would be a fantastic step for them.

Does the world really need another closed-rights, point-based generic roleplaying 
system?  My opinion is "no way".  On the other hand, would the world be benefited by 
an open-rights version of the HERO System?  My opinion is "absolutely yes".

Even worse, I suspect that the "new" Hero Games will not even publish Champions as 
their lead-off product - they're going to do "HERO System 5th Edition" as a generic 
core book, and try to out-GURPS GURPs.  "Champions" has huge brand equity, despite 
being trashed by various owners (intentionally and unintentionally) for the past 
decade.  "HERO System" has almost none except among the hardest of the hard core.

On the other hand, if they did "Champions 2001" or something similar, and had a "HERO 
System" brand identifier (serving the role of the d20 logo for D&D and Star Wars) they 
could start building up the equity in a licensable mark separate from their core brand 
identity.  I am sounding to myself like one of those people who believes all problems 
are nails because all they have is a hammer, but the parallels between Champions and 
D&D are pretty eerie.

On a related topic (from the www.herogames.com discussion board), I thought Woody's 
trashing of the d20/OGL concept was quite interesting.  Woody runs a sales & marketing 
company that competes with Osseum and Wizards' Attic.  He talks to a lot of 
distributors and retailers and has a relatively informed opinion about the state of 
the market.  

Here's how I think the d20/OGL market developed:

1)  d20 products are a risk which few companies take; meaning there's not a lot of 3rd 
party stuff available for sale when 3e launches

2)  A handful of new and existing companies take the leap, and are rewarded with big 
sales

3)  A second group of fast-moving publishers who were either just late to the first 
wave, or acted fast to get into the second wave also earn a larger-than expected 
return from publishing d20 products

4)  Seeing the success of the first and second waves, nearly 200 publishers jump into 
the market with both feet - announcing extensive product lineups, some projecting 
releases two and even three years into the future

5)  As the third wave of products starts to hit retail shelves, it becomes obvious 
that the market for d20 products is not endless and there will be a saturation point; 
retailers begin to trim preorders and stop reordering many d20 products

6)  Today:  Distributors and retilers have a lot of unsold/unsalable d20 merchandise 
that they ordered between #4 and #5.  That inventory has reduced the overal 
profitability of the total RPG business by some unknown amount.

Woody assumes that the net is negative (that is, the total dollars trapped in the 
unsold/unsalable inventory exceed the total dollars of net profit generated by d20 
sales).  He then translates his opinion that the net is negative into an opinion that 
"d20 has been a disaster".

His opinion on the matter is interesting, because his business sits at the nexus of 
payments between retailers, distributors and publishers.  Its no secret that the 
cashflow in the RPG market has been tightening all year, and has reached a critical 
point for many publishers in the 4th quarter.  Payments are being delayed at many 
points along the channel, and delayed payments almost always means delayed products 
(which delays cashflow even futher; creating a really bad negative feedback loop).

My opinion is that d20/OGL products have contributed a sizable net profit to the RPG 
market this year.  In fact, I think that the non-WotC d20/OGL business was probably 
about as big as the total non-WotC RPG business combined.  I think that there is a lot 
of unsold inventory at the distribution level, but a much lower level at retail.  
Distributors, and to a lesser extent retailers are suffering a case of inventory 
indigestion brought on by an inability to accurately forecast demand for d20 products. 
 We see this kind of problem all the time in hobby gaming - everyone is such an 
optimist at heart that when things are looking good, there's an institutional 
overreaction which packs shelves with product in anticipation of future sales.  
However, when those sales don't materialize, there's also a quick reaction to assume 
the worst.

Here's the lessons I think we can draw from 2001:

1)  There was/is a big market for d20/OGL products, but it is not infinitely big

2)  There are too many short adventures, from too many companies, and too many of them 
are poor quality offerings

3)  There are too many companies bringing products to market without adequately 
generating interest with customers

4)  Retailers are going to become especially picky in 2002 about placing orders for 
d20 products, even from previously successful companies, and are going to be very 
reluctant to place reorders.

2002 should show a marked increase in total profit generated, because a lot fewer 
dollars will be lost to unsalable/unsold inventory.  It will be interesting to see how 
long the pessimism in the middle tiers of the industry persists.

Ryan
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