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American Focus > Blog > Economy > Dungeons, Dragons, and Monopolies – Econlib
Economy

Dungeons, Dragons, and Monopolies – Econlib

Last updated: November 27, 2024 10:27 am
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Dungeons, Dragons, and Monopolies – Econlib
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Dungeons & Dragons (D&D) is a beloved tabletop role-playing game that has been captivating players since the 1970s. In recent years, the game has experienced a surge in popularity thanks to podcasts, TV shows, video games, and movies that have brought D&D into the mainstream. The intellectual property of D&D generates millions in revenue annually for parent company Hasbro.

Initially, D&D published physical rulebooks, sourcebooks, and modules to guide players and provide them with pre-made stories. Players also had the freedom to create their own content, known as homebrew, including stories, magic items, and more. However, tracking complex character classes, especially spellcasters, could be challenging for players. To address this issue, Twitch created D&D Beyond, a website that automated many aspects of character management. In 2022, D&D acquired D&D Beyond to consolidate all content and capitalize on the digital gaming trend accelerated by the COVID-19 pandemic.

Despite its popularity, D&D faced backlash from the fanbase when it announced a new content agreement called “One D&D” in August 2022. Players feared limitations on their creative freedom without paying royalties to D&D. After a wave of cancellations and player discontent, D&D backtracked and placed much of its content under an irrevocable Creative Commons license.

In a more recent misstep, D&D announced a change that would render previous rulebook content unusable in digital platforms unless players purchased the new edition. The fanbase once again voiced their opposition, prompting D&D to reverse its decision within a week.

The incidents with D&D highlight an important lesson about monopoly power. While a company may be large and own substantial intellectual property, it does not necessarily equate to monopoly power unless there are no viable substitutes for its product. Mistaking size for monopoly power can lead to misjudgments by both firms and antitrust regulators.

See also  One way or another - Econlib

In conclusion, the story of D&D serves as a reminder that even prominent companies can falter when overestimating their market power. It underscores the need to assess monopoly power accurately based on factors beyond size, market share, or profit margins. As D&D continues to evolve, players can enjoy the game knowing that their voices hold significant sway in shaping its future.

TAGGED:DragonsDungeonsEconlibMonopolies
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