They still had large stocks of other games at the time, which they started selling at a huge discount - according to the manager of the Leeds Virgin games dept they probably made a loss on most.
Yep, but that was to clear old stock. The "good stuff" went in the first sale, it took years to get rid of the rest because no one wanted it...
The profit margins on RPGs are slim anyway, so rather than fight they they just phased them out in favour of computer games.
Maybe computer games were more profitable then. Today the margins are very tight unless you have bulk buying power (ie: EB Games). Whilst RPG & wargames margins have always been retail freindly, otherwise stores wouldn't be viable in the first place.
The Armoury closed soon after, followed by Games (helped, I'm told, by the poaching of senior staff). Of the four pre-GW FLGS in Leeds, only Travelling Man survived, probably because they also sold comics.
Whilst its sad to see stores close, there are a multitude of reasons for doing so. An outside shock may well have been the final straw when you are on your last legs anyway. I find it implausible however that GW was THE reason, but I find it VERY plausible that GW was blamed to save face or that the anti-GW customer base put two & two together to make five...
One thing this "blame GW" approach has done is put people off opening thier own store, normally when a shop dies, a new one will open up to fill the void. When so many people repeat "GW is all powerfull" it becomes a self fullfilling prophecy.
There are a dozen to twenty large publishers out there dieing to get their products into more FLGS. They offer good margins, promotional material, gaming support, access to advertising and often contact with enthusiastic gamers in the local area. Wargames clubs very quickly rally behind a new FLGS.
New FLGS's aren't opening tho because of perceptions that;
- GW owns the customer base
- no one plays anything else
- GW staff are too freindly, too salesy, too well trained, run games all the time, recruit "young kids", ignore "old kids", sell a crappy product, etc
- GW only sells to FLGS 'cause its a trick!
- Without GW product you can't make money
- Without GW product no one will buy off you
- If I'm successful GW will open a store next door and steal all my RPGers, historical & fantasy wargamers, German board gamers, comic collectors, modellers, railway enthusiasts, card gamers, RC aircraft and kite flyers.
- And somehow GW brainwashes all those kids to never, ever try playing anything else...
Gosh that GW is sneaky...