Now
I don’t normally blog about news issues here but the turmoil in the halls of
power in the Evil Empire effects all of us in the wargaming community whether
we want to admit it or not. Mr. Tom Kriby has been forced out of the CEO
position but he is still Chairman of the Board so most likely brutal infighting
will occupy the halls of power at Notingham for some time to come. Here is a
link to the GW annual report.
Here
are my personal thoughts on Kriby’s preamble note passages in italics are
direct quotes from the preamble.
“CHAIRMAN’S
PREAMBLE
Games Workshop has had a really good year.
If your measure of 'good' is the current financial year's numbers, you may not agree. But if your measure is the long-term survivability of a great cash generating business that still has a lot of potential growth, then you will agree.” No company has a good year when they lose one fourth of their value. This is why he’s not CEO anymore but he refuses to accept it.
Games Workshop has had a really good year.
If your measure of 'good' is the current financial year's numbers, you may not agree. But if your measure is the long-term survivability of a great cash generating business that still has a lot of potential growth, then you will agree.” No company has a good year when they lose one fourth of their value. This is why he’s not CEO anymore but he refuses to accept it.
“Having taken
on the conversion of our stores to a one man format with all the concomitant
complexity of staff changes and new sites and new lease negotiations – a long
job not quite finished – we decided to re-arrange the management of our sales
channels from a country-based system to a central one. This meant removing four
European headquarters, consolidating all trade (third party) sales personnel at
our Nottingham base, creating a new
continental European grouping of our retail stores, and recruiting new
management for these divisions whilst flattening the structure by removing all
middle management. At the same time we changed leadership of our retail chain
in the North American area, and gave birth to our new web store after many
months’ labour.” Looking beyond the
megalomaniacal even fetish like need to try and control a world wide retail
company from one location this illustrates that Mr. Kirby has no idea what sort
of business he’s in. Let me start by stating that even if Mr. Kirby understood
wargming and had good business sense GW would lose market share. Why because GW
gained it’s preeminence prior to the rise of the internet. In the 90’s the
majority of Sci-fi and fantasy wargamers in the West played one of GW’s core
games that's no longer the case now that smaller companies can reach gamers through the internet. Now here’s why Mr. Kirby doesn’t have a clue, GW made the most profit in
its history during the mid 2000’s with their LOTR Strategy Battle Game they did
this even though internet gaming stores were well established by this time,
they did this by bringing in an entirely new group of people excited by the
LOTR films through their fleet of very visible high street stores. No other
company could have done that and now thanks to Mr. Kirby’s reorganization
GW can’t ever do it again. His one man store model will never bring in anywhere
near the numbers of new people to GW as the high street model did. What’s worse his naïve belief that the internet will increase GW sales the last thing GW
should want is gamers shopping on the internet. On the internet gamers are confronted with
a cornucopia of games with prettier models, more interesting rules and cheaper
prices. That doesn't help GW's bottom line.
“In the
technological world we occupy there is constant debate over who 'innovates' and
who merely copies. We have, this last year, spent an indecent amount of your
money trying to stop someone stealing our ideas and images. It is a very difficult
thing to do when it is done through a legal system designed to prevent people
stealing hogs from one another. Our experience has probably been typical of
most – far too much money spent on far too little gain. The argument is that we
have to do this or we will, bit by bit, lose everything that we hold dear,
everything that keeps the business going.” I read this as the board feels
he’s spending too much on lawyers. The 0.3 million reduction in legal costs
cited in the year end reports suggests to me the tide of IP lawsuits is
beginning to recede.
“Because
no one seems able to grasp the essential simplicity of what we do there has
always been the search for the Achilles heel, the one thing that Kirby and his
cronies have overlooked. These are legion.” Actually Mr. Kirby seems
incapable of understanding the simplicity of Games Workshop it’s a company that
makes games people want to play and miniatures people want or can afford to
buy. Interest in GW's core games has been dropping for some time now and a large
segment of people who would like to purchase GW miniatures feel they can’t
afford them anymore.
Sorry I had to get that off my chest.