GW seems to be doing well

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GW seems to be doing well

Postby RAMSEY » Fri Jan 06, 2012 10:06 am

Read cthe article in the link and tell me if you feels sorry for GW at all.

http://www.thisislondon.co.uk/standard- ... percent.do
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Postby Redbeard » Fri Jan 06, 2012 3:56 pm

Don't read too much into that raw figure, pay attention to this quote:

The group's results also benefited from a large royalty payment it received from the games manufacturer THQ after the launch of its Space Marine computer game.

If you look further into their own numbers, I think it shows that:

a) their margins stayed the same, which means that price increases on finecast models are actually the result of higher costs for finecast models, not profiteering. This is likely due to more QA and more rejects, in spite of lower materials costs.

b) Increased profit, but steady revenue, combined with price increases shows that they're losing customers and sales, and making up for it with higher prices on those who stay.

Not horrible for the short-term, but losing customers is not a winning long-term strategy.

The royalties show that there is still a lot of play in their IP. That's good, but the backstory has always been one of their strengths.
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