SmiteWorks Official Statement about OGL 1.1 and Open Gaming Licenses

[ddavison]

Hey, I'm not saying I can't be bought... but my price is very high.

Our agreement means that we would would have at least a 60 day notice before termination of our agreement and we would be able to continue selling content at that point. When I've spoken with WOTC, they indicated that they don't see any reason why we shouldn't be allowed to continue to serve our fans. I try not to take it for granted, but there is a compelling reason for WOTC to allow other VTTs to continue. Some people will naturally go with whatever WOTC offers. Some others may prefer that VTT over our VTT. Allowing FGU to continue in the official VTT space provides WOTC more opportunities to appeal to a broader range of customer tastes. It makes good business sense. We pay a higher percentage royalty than WOTC gets for physical books and I don't see them stopping that anytime soon either. We have no cost to operate and any revenue we bring in goes right to their bottom line.

[esmdev]

Hey, I'm not saying I can't be bought... but my price is very high.

Our agreement means that we would would have at least a 60 day notice before termination of our agreement and we would be able to continue selling content at that point. When I've spoken with WOTC, they indicated that they don't see any reason why we shouldn't be allowed to continue to serve our fans. I try not to take it for granted, but there is a compelling reason for WOTC to allow other VTTs to continue. Some people will naturally go with whatever WOTC offers. Some others may prefer that VTT over our VTT. Allowing FGU to continue in the official VTT space provides WOTC more opportunities to appeal to a broader range of customer tastes. It makes good business sense. We pay a higher percentage royalty than WOTC gets for physical books and I don't see them stopping that anytime soon either. We have no cost to operate and any revenue we bring in goes right to their bottom line.

I'm curious about the last sentence, did you mean they have no cost to operate? I assume you have a considerable cost to operate.

[ddavison]

I mean that WOTC doesn't incur any costs for us to operate. Other than sending us files whenever a new product is ready to print, and getting reports and payments, we are pretty low maintenance for them.

[andrewcr]

I mean that WOTC doesn't incur any costs for us to operate. Other than sending us files whenever a new product is ready to print, and getting reports and payments, we are pretty low maintenance for them.

Hi Doug.

Thanks for the reply. Nice to know you are not "cheap" and I would not assume to presume.

But what might be on the table:

With a sale price per user for DnD Beyond is around $14USD each (10M users at $146M sale price).

Steam gives a guess at your user numbers https://steamcharts.com/app/1196310 and and https://steamplayercount.com/app/252690 and you also gave us some data on users https://www.fantasygrounds.com/reports/2020Q4/

So I (and you) can probably calculate an offer price range. lol

An issue for us/Smiteworks is that should there be an end of the licence for 5e that leaves you with maintenance and customer service costs for 5e (which is the biggest game base).

I do hope the right decision is made.

[kinocetus]

WoTC isn't going to be happy until people can only play any version of D&D using their tools so they can charge outrageous prices. Everyone should cancel their subscription to D&D Beyond and support northing WoTC does going forward. I'm okay with making a profit on your own IP, but this is just greed. )-;

[Nylanfs]

They were making money before the license with WotC, so I'm not worried.

[ddavison]

Hi Doug.

Thanks for the reply. Nice to know you are not "cheap" and I would not assume to presume.

But what might be on the table:

With a sale price per user for DnD Beyond is around $14USD each (10M users at $146M sale price).

Steam gives a guess at your user numbers https://steamcharts.com/app/1196310 and and https://steamplayercount.com/app/252690 and you also gave us some data on users https://www.fantasygrounds.com/reports/2020Q4/

So I (and you) can probably calculate an offer price range. lol

An issue for us/Smiteworks is that should there be an end of the licence for 5e that leaves you with maintenance and customer service costs for 5e (which is the biggest game base).

I do hope the right decision is made.

DDB was actually pretty cheap IMO, but it was also because DDB was worth almost nothing if they lost the D&D license. They had ALL their eggs in one basket and basically had no choice. I don’t have any knowledge of what those discussions looked like, but if you name your company D&D Beyond, you benefit from the name but are also beholden to it.

[andrewcr]

DDB was actually pretty cheap IMO, but it was also because DDB was worth almost nothing if they lost the D&D license. They had ALL their eggs in one basket and basically had no choice. I don’t have any knowledge of what those discussions looked like, but if you name your company D&D Beyond, you benefit from the name but are also beholden to it.

I'd say the original terms had an option to buy at a set price and WOTC exercised it. Adam Bradford left DDB a bit before hand which I through I was a bit weird at the time given he was a founder. I guess the deal was basically done well in advance and he left at the time that best suited the forthcoming arrangement.

Will see what we will see. But I look forward to many more decades of smiteworks owners remaining as profitable and caring owners.

[Myrdin Potter]

Doug landing the first official license and Smiteworks steadily improving Fantasy Grounds without getting way over extended is enough for me.

I play more than 5e, so their VTT doing only their system never would work for me. Glad that FG will still have 5e content this year and if the license is not renewed I can still keep using what I have.

[andrewcr]

Looks like Wizards might be coming to the party with today's annoucement https://www.dndbeyond.com/posts/1428...n-game-license.

I think the reputational and financial damage is likely done. The movie, one D&D and books are off my list.

I do hope Smiteworks doesn;t force us to one D&D (can;'t use the 5e ruleset) but I wonder how you can manage module compatability with two systems? Be a good talk when you know.

I am certainly looking forward to Black Flag and I hope with the relationship that Paizo. MCDM and Kobold Press has with Smiteworks it will get a go on this platform.

I would like to see these three companies work together on a single better core system they all can use. Fragmentation is problematic to maintain momentum.