Siege!

Not a great week for me, ending on a down note that's going to buzz and grow over most of the rest of the year. But, that's nothing I'm going to go into here, at least not now. Not your problem and none of your business. You have concerns of your own.

On the plus side (and as a note to Tim & any Legends members swinging by) issue #120 arrived yesterday. I know new CM Grant is aiming to get the next issue out promptly after the next deadline, so some time this weekend will be spent on my next zine.

I appear to now have all the items I need to get our taxes done, so taking care of that this weekend would be a good idea.

I also want to a little belatedly offer a public... pre-congratulations to D & T on their announcement of a late April wedding. At the moment I have no idea what state I'll be in by then (pun not intended, but I'll roll with it) so I can't claim to have any plans for late April just yet.

Having decided to leave the Big Depressing & Aggravating items out of this post I'll focus on something far more trivial that is nonetheless also aggravating. This will be another Heroclix post.

While Heroclix players were focused on finally getting some news & views on March's Origin set - most of which I outlined in this post, followed by the first three items added to the Origin gallery (Wonder Woman's the New Guy Night piece, Fate's the Origin brick mail-away and Starman's the first sneak peek from the set) - most of us all but overlooked this announcement made Thursday, at least for the first few hours. I'm reprinting it below for the record:
WIZKIDS TO CONSOLIDATE DISTRIBUTION

January 11, 2007 (SEATTLE) WizKids, Inc. announced today that it has entered into an agreement with Diamond Comic Distributors and Alliance Game Distributors for the core hobby portion of its distribution in the United States and Canada.

Our strategic focus is to create a closer relationship with our retailers, protect the equity of our brands and reinvest in our products. Through careful thought and analysis we have come to the conclusion that these goals are best achieved by using Diamond and Alliance as our distribution partner for the Core Hobby portion of our business, said WizKids CEO, Lax Chandra. The agreement will better position WizKids to gain valuable customer feedback which will be used to improve product development, increase manufacturing efficiencies and create focused promotional and marketing efforts to increase sales in Core Hobby stores. We firmly believe that working with Diamond and Alliance will work best to achieve our strategic goals and provide the best service for our retailers, our consumers and our business. We are excited by the opportunities that we hope to create in this new relationship.

Diamond and Alliance are extremely excited to serve WizKids and the Hobby Game community in this capacity, said Steve Geppi, President and CEO of Diamond Comics. We have devoted significant resources to support this effort and are confident in our ability to assist WizKids in reaching its goals as well as meet and exceed the needs of hobby retailers.

The agreement is effective immediately and will affect all future WizKids releases with the exception of HorrorClix: The Lab, Pirates of the Frozen North and DC HeroClix Origin. Former distributors who have placed pre-orders for these products have the option of receiving or canceling orders for these products under terms we have previously communicated to them.

Hobby retailers are urged to contact Diamond Comic Distributors or Alliance Game Distributors in order to receive uninterrupted WizKids product shipments. Retailers should call (800) 452-6642 ext. 215 or e-mail NewAccounts@diamondcomics.com to open an account with Diamond or (800-NOW-GAME ext. 1005 or e-mail mew@alliance-games.com to open an account with Alliance if they currently do not have an active account with either Alliance or Diamond.

About WizKids
A wholly owned subsidiary of the Topps Company (TOPP), WizKids is a Seattle-based game developer and publisher dedicated to creating tabletop games driven by imagination. Their HeroClix and Pirates brands are among the most successful games on the market today with over one hundred million miniature game figures sold worldwide. For additional information, visit www.wizkidsgames.com.

About Diamond Comics Distributors
Diamond Comic Distributors (www.diamondcomics.com) is the world's largest distributor of English-language comic books and related pop-culture merchandise. The company was founded in 1982 and is headquartered in Timonium, MD, with strategically located distribution centers serving over 4,000 specialty retailers worldwide.

About Alliance Game Distributors
Alliance Game Distributors is a recognized leader in Hobby Distribution, offering an exceptional range of products, services, and programs to adventure-hobby retailers throughout North America and the world. With 5 sales offices and 4 warehouses in the US, the company takes pride in providing the best service, finest selection, and best support in the industry. For additional information, visit www.alliance-games.com.
It's definitely not good news. To give you a better understanding of why, here's an article covering the consequences of the deal from another direction. (Once more, I'm reprinting it here since such items don't stay out there indefinitely.)
WizKids Distributor Reactions
To Being Cut Off for Exclusive
January 12, 2007

Fourteen companies in the U.S. and Canada were terminated as WizKids distributors on Thursday as WizKids moved to exclusive distribution to the hobby channel through Diamond/Alliance. We talked to four of the largest of those companies to get their reactions. For obvious reasons, none of them were happy about the move. Although their comments varied, there were common elements in many of the conversations.

None of the distributors we contacted felt that the change would benefit WizKids' sales. "I honestly believe that a lot of retailers will stop carrying the line because they don't want to promote exclusivity," ACD COO Danny Procell told us.

"I don't think it's going to help them," Blackhawk CEO Kim Kowalewski said. "It will make WizKids products a little more inaccessible and I think there's enough of an independent spirit in the game industry that it will hurt them."

All noted that the effect on their businesses would have been a lot more dramatic a couple of years ago, when WizKids' sales were flying high. Only one of the companies ranked WizKids as its second largest supplier; the other three said that WizKids ranked in positions between #4 and #6 in volume. "This seems like a move made out of desperation," GTS Distribution Director of Entertainment Barry Calhoun said, referring to the context of WizKids sales trends.

The timing of the move seemed to have been made after a gap in WizKids shipments, when money owed to WizKids by distributors was at a minimum. Two of the distributors we contacted said they were actually owed money by WizKids (presumably because of returns), rather than vice versa.

Three of the four distributors, ACD, Blackhawk, and a company that wanted to remain anonymous, had already made the decision not to handle WizKids products for which they had taken orders. One, GTS, was contacting its customers before making a decision on the question.

The general tone of the reaction was extremely negative. "We're very surprised and very disappointed," Calhoun said, vowing to push competitive CMGs in the future.

Kowalewski had a similar reaction. "Their (retailers') choice is being taken away and they're being forced to buy from a distributor they didn't choose," he said. "We are actively encouraging retailers to tell their customers of all of the options they have for gaming. If retailers value the autonomy of their own businesses, then what they should be doing is actively promoting other game products to their customers."

The loss of choice was also noted by another distributor, who wished to remain anonymous. "Retailers are businessmen enough to decide who to buy the product from," he said. "They don't need a manufacturer to tell them who to choose."

The management of ACD, until last year WizKids' largest hobby distributor, called the action a "slap in the face." "WizKids is showing no loyalty to a company that supported them from the beginning, took risks on their unproven products, and took an initial financial risk to the tune of over a quarter million dollars," CEO Rich Kummer said of ACD and its early support. "Instead they are going with a company that passed on them at the beginning."
I noted with wry amusement that Wizkids' forum went down for a formal "maintenance" last night and as of this posting are still down. The last post I put up was an addition to a thread concerning the distribution change -- no, I'm not taking credit for the shutdown, merely suggesting that I was likely part of an anticipated wave. They didn't want to go away for what might be an extended weekend (Martin Luther King Day is Monday) to find 12 foot drifts of shitstorm on their messageboards.

I'll be interested in seeing how long the drawbridge stays raised, and what things look like once it comes back down.

At the moment I've begun looking at two of the online Heroclix retailers I've dealt with in the past.

ICONUSA still shows Origin items up for sale, but I know from experience that they're often a little slow in making changes to their website (e.g. note that they're still referencing Origin delivery in February) so I'll be checking there periodically for changes.

Gathering Ground, where I have a pre-paid order in for Origin, still has my order listed when I check my account folder. However, in their general Heroclix sales area (which is where the link goes to) the link to the Origin set is gone.

't ain't there no mo'.

They're not accepting any new orders for Origin. That's a telling thing.

Obviously, they're still selling items they've already stocked and/or have supply lines for, but the message appears pretty clear: Under the sudden change in the distribution system they're out of the Heroclix biz when it comes to new product.

We won't know how this is really panning out until the point where we'd expect to see orders being accepted for the Avengers set. In the interim, with Origin, we may get some indication as people report in from their brick and mortar retailers concerning what (if any) local discount they've received, and how that compares to previous sets. Even then it may be too soon, as the Wizkids/Diamond combo may offer product to their accounts at a special price to help smooth the transition. The noose might not tighten until later in the year.

Once again, it occurs to me that what happens with the Avengers set will be a much better indicator.

I don't want to jump to conclusions, especially with so much that's unknown, but it doesn't look promising.

Beyond that, I have to look at the economic realities and how I've approached Heroclix collecting. I tend to be a completist, at least in terms of the REV & uniques portions of each set; dabbling in a set isn't going to do it for me. If the product's only available to me at or near full retail I'm not going to buy anything like the amount I have of each set so far, and I'm not going to spend the same amount to get perhaps 60-70% of what I did just a couple months ago. Put it all together and... I'm not sure.

Does this mean that I'll be largely out of the new end of this game sometime in 2007? Too soon to say, but that's where all of the signs are pointing. Maybe I'll manage to become a dabbler -- just picking up a few boosters here or there along with the Action Packs (more broadly retailer-distributed mini-sets complete with a map and abbreviated rules) and some of the mail-aways, but - man - that'll be another depressing change.

Way to go, Wizkids. I hope those who've made the decision are closest to the flames.

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