Board Games in Russia 2022: 5 Market Facts

Contents:

• Increasing prices for board games and their production
• The dangers of further price increases for board games
• How board games are adapting to rising prices
• Isolation of board games in Russia: challenges and prospects
• Current challenges in logistics
• What should developers do if they have lost their sales platforms?
• Stable demand for board games in the online space: trends for 2023
• Board game festivals: the path to industry recovery
• Prospects for the board game industry in Russia

The gaming industry continues to attract attention, and in 2022 this has become especially evident. Previous articles by Skillbox Media's Gamedev editorial team have featured opinions from developers and experts, as well as conclusions from a lecture by renowned game designer Yaroslav Kravtsov. Technological advancements, new trends, and shifts in consumer preferences are shaping the future of gaming. We will continue to monitor trends and analyze expert opinions to provide readers with a comprehensive understanding of the current state of the industry.

The board game industry has attracted increasing attention in recent years. In this article, we will examine the current state of board games and how their developers are adapting and evolving to meet modern challenges. Board games are becoming not only entertainment but also an important element of social interaction, making them especially popular. We will discuss the trends, innovations, and opportunities opening up for creators and players in this dynamic field.

Board Game Price Rise and Production

Since the beginning of 2022, Russia has seen a discussion about rising prices for various products, including board games. Experts indicate a 5-20% increase in product costs. Sergey Rovenkov, co-founder and CEO of Silver Hoof Games, a company specializing in tabletop role-playing games, explains the reasons for this increase. The price increase may be due to increased costs of production, logistics, and raw materials, which directly impact the final cost of the games. It is important to monitor changes in the board game market to stay on top of trends and adapt to new conditions.

In April, we were forced to raise prices to finance the printing of new editions. This decision was critical to our ability to release new games. We understand that this change may negatively impact our players' budgets, but without raising prices, we will not be able to cover production costs.

The purchase price of board games has increased due to increased production, distribution, and licensing fees. The main factors driving the price hike include inflation, rising costs of production materials and logistics, and fluctuations in the ruble exchange rate. However, by summer, the situation began to change. Nikolai Malyshev, Head of Wholesale Sales at Lifestyle Publishing, reports optimistic trends in the board game market. This may indicate that in the future, buyers will be able to count on more affordable prices and a wider variety of games.

In March, we experienced a 15% price increase, but in May we managed to reduce prices on a number of products. This was made possible by changes in purchasing prices. We continue to work to reduce prices on certain items. If the economic situation worsens, we will consider options for streamlining production or eliminating certain components to maintain affordable prices for our customers.

The Dangers of Further Board Game Price Increases

Board game developers and publishers are expressing concern about the potential loss of loyalty among their audiences due to continually rising prices. Experts note that players are currently accepting the increase in game prices, but this patience is not indefinite. Sergey Rovenkov, a well-known figure in the industry, emphasized that board games currently offer a good price/quality ratio compared to other leisure activities. However, further price increases could negatively impact product perception and lead to a decline in consumer interest. It is important to consider that a stable pricing policy can play a key role in retaining the audience and maintaining interest in board games.

The rise in board game prices is largely due to the increase in printing costs. According to Rovenkov, the cost of such services in Russia has increased by 50% compared to February 2021. This significant increase forced him to accelerate the process of completing the layout of the new game. In the context of rising costs, board game manufacturers are faced with the need to revise their pricing policies, which may affect the availability and attractiveness of new products for consumers.

In February, when the first sharp jump occurred I worked nonstop to complete the layout and send it to print. Otherwise, we would have had to print the entire run at new, significantly higher prices, which would have been financially unprofitable. It is worth emphasizing that the increase in prices for paper, paints and other materials began before February 2022 and continues to affect the printing market.

Dmitry Pavlov, Director of the Publishing House Evrikus, the board game company, noted that supply issues from China and price increases began to be felt even during the pandemic. While the situation was challenging at first, the company now accepts this as a new normal, recognizing that significant improvements are not expected in the near future. Switching to Russian production could help reduce costs, but under the current circumstances, this appears unfeasible for the company.

How Board Games Are Adapting to Rising Prices

In a climate of economic instability, when production costs continue to rise, companies are looking to optimize their expenses. The transition from physical copies to digital editions is becoming one of the most effective solutions. This is especially true for tabletop role-playing games, where only paper and pencil are required to play. Digital formats not only reduce printing and distribution costs but also provide more convenient access to materials. Players can easily update rules, add new elements, and share content, significantly improving the gameplay and increasing its accessibility. Thus, the transition to digital editions not only saves money but also enriches the player experience in tabletop role-playing games.

Sergey Rovenkov, an expert in the field of tabletop role-playing games, believes that in the coming year, many developers may switch to creating digital versions of their projects. He notes that the digitalization of board games is already actively developing, and there is growing interest in this area. This change opens up new opportunities for players and creates alternative formats for interacting with their favorite games.

Cost reduction is just one approach to improving a company's financial performance. Finding new sources of revenue is equally important. For example, companies can offer players alternative purchase options. Supporting popular older games by releasing additional content is recommended. This will not only retain audience interest but also create additional monetization opportunities. It's also worth considering introducing installment plans or game subscriptions, which will make it easier for players to purchase content and increase overall product loyalty.

The crisis creates new opportunities for growth. Nikolai Malyshev, an expert in gaming projects, emphasizes the importance of using the current situation to strengthen positions in the domestic market. With the likely decline in the selection of foreign board games, domestic developments have the opportunity to occupy the vacated niche. This opens up opportunities for the development of local producers and stimulates interest in domestic games. It's important to adapt strategies and offer high-quality products to meet player needs and establish a competitive edge.

The production process in the gaming industry can last several years, as Rovenkov notes. Publishers often sign contracts with creators for up to two years. If difficulties arise in collaborating with foreign studios, this may necessitate focusing on local talent. Interest in domestic developers can contribute to the growth and development of the Russian gaming market, opening up new opportunities for creating unique content and increasing competitiveness in the international arena.

Isolation of Board Games in Russia: Challenges and Prospects

The isolation of Russia and the domestic board game market is causing serious concerns among experts. Under economic sanctions and restrictions, it is becoming increasingly difficult to conduct financial transactions abroad, including licensing and publishing foreign projects. Sergey Rovenkov notes that this creates significant difficulties for developers working with foreign intellectual property. As a result, many companies are facing problems accessing the latest games and publications, which is negatively impacting the development of the board game market in the country. Experts warn of the potential consequences of such isolation, including a reduction in the variety and quality of products offered.

Developers may face a situation where they need to re-acquire licenses for old games at significantly inflated prices or on less favorable terms. In the worst-case scenario, foreign partners may completely cease cooperation, as the distributor is unable to meet financial obligations. This could negatively impact future projects and the company's development.

New translations of board games into Russian may be at risk in the near future. Experts note that foreign partners, as a rule, do not refuse cooperation, but only temporarily suspend it. Nikolai Malyshev comments on this situation in his article "Lifestyle." It is important to monitor developments, as this could impact the range of board games available to Russian-speaking users.

Work with foreign companies has been almost completely suspended for some time. However, we are gradually restoring cooperation with most of our partners. The economic crisis and changes in the geopolitical situation have already impacted some new projects that were in the approval stage. Most of them have been put on hold, but we continue to closely monitor the situation and hope for their resumption, notes Malyshev. We are confident that with the return of stability, opportunities for new joint initiatives and projects will emerge.

Alexander Ermakov, Director of Studio 101 and a respected publisher of tabletop role-playing games (RPGs) in Russia, shares his observations on the current situation in the industry. He notes that collaboration with European partners has temporarily ceased, leading to the suspension of three projects: Forbidden Lands, Undead (Vaesen), and the Colonial Marines expansion for the Alien game, developed by the Swedish company Fria Ligan. This situation highlights the importance of international cooperation in the board game industry and also reflects the current challenges facing Russian publishers in a changing market.

Current challenges in

Russian companies, collaborating with foreign partners, have faced the disruption of traditional supply chains. This has created numerous challenges in the procurement of materials, production of goods, and their distribution to retail outlets. Logistics is a complex and interconnected system, where changes to even one element can cause disruptions at all levels. In an unstable environment, it is important to adapt logistics strategies, optimize processes, and find new ways to ensure smooth operations. Effective logistics management is becoming a key factor for successful business management and maintaining competitiveness in the market.

Our production facilities are located both in Russia and China. Despite the difficulties that arise with Chinese partners, most of them can be overcome. However, some suppliers have completely stopped working with us. However, these difficulties are considered temporary, as confirmed by our partners. We continue to work to improve relations and find new solutions for successful business.

Alexandra Ermakova expresses concerns about the availability of materials needed to create board games. With interest in board games growing, ensuring consistent access to quality resources is becoming critical. This may affect the development of the industry and complicate the production of new games.

The Director of Studio 101 is responsible for the strategic management and development of the company. He oversees all aspects of the studio's operations, including the creative process, financial planning, and client interaction. The director's primary responsibility is to ensure high standards of quality and innovation in projects. Thanks to his leadership skills and professional experience, Studio 101 successfully implements a variety of projects that meet client needs and align with current industry trends. The director actively participates in team building, creating a comfortable working atmosphere and fostering the professional growth of employees.

Problems with high-quality paper were temporary and arose primarily due to internal logistical disruptions. Currently, we are concerned about issues related to UV varnish, non-standard lamination for covers, and high-quality inks. Fortunately, deliveries from China have resumed, but the process of restructuring logistics may be challenging.

Sergey Rovenkov recommends paying attention to Chinese manufacturers in the board game industry. Chinese printing plants occupy an important place in the global market, offering a wide range of board game production services. Many Chinese printing houses continue to successfully collaborate with Russian companies, ensuring high quality and competitive pricing. It's important to consider this factor when choosing a partner for board game printing, as collaboration with Chinese manufacturers can open up new business opportunities and increase project profitability.

What should developers do if they lose sales platforms?

The situation in the gaming industry has reached a critical point due to the loss of access to important marketplaces. Local developers, such as Studio 101, have faced serious problems, losing distribution channels. For example, they were unable to sell digital copies of tabletop role-playing games (RPGs) on the international DriveThruRPG platform due to restrictions imposed by PayPal, Visa, and MasterCard. This situation is seriously affecting the development of the industry and jeopardizing the developers' future projects. New solutions and alternative payment methods are needed to restore access to foreign markets and support local gaming initiatives.

Changes in the market environment prompted Studio 101 to seek new opportunities. As a result, the company focused its resources on developing a new portal, "Roleplay Station." This move allowed Studio 101 to maintain its operations and adapt to new conditions. The new portal has become an important tool for the company's continued operation and audience engagement in a changed world.

Studio 101 is not alone in facing difficulties recently. Other developers, such as Silver Hoof Games, are also experiencing difficulties. They initially used the DriveThruRPG platform to distribute their products, but after access to this resource was shut down, they switched to itch.io. When this platform also refused to accept payments from users in Russia, Silver Hoof Games decided to create its own online store to ensure availability of its products. Creating their own store will not only allow them to maintain customer relationships but also expand their sales opportunities.

Sergey Rovenkov, a representative of Silver Hoof Games, reports that since March 2022, they have not received income from digital sales and can only sell physical copies of their games at festivals and through their store on the social network VKontakte. The company decided to create its own platform because the terms of third-party services did not meet their requirements. However, Rovenkov cautions other developers against repeating this difficult path, emphasizing the importance of carefully assessing the opportunities and risks.

Launching your own online store requires significant financial investment and ongoing expenses, and is also significantly time-consuming. Therefore, it is worth considering alternative platforms for selling non-game items (NGI). For example, you can use online stores like Roleplay Station or use social networks like VKontakte to organize sales. These platforms can be an excellent alternative for starting a business with minimal costs and risks.

The loss of access to Patreon was another serious blow. The platform ceased cooperation with Russia, affecting many creators. "We had subscribers on this platform," notes Rovenkov. Although subscriber contributions were not the main source of income, they were a nice added bonus.

Amid market changes in Russia, interest in the Boosty service, which allows developers, bloggers, and content creators to receive funding from their fans, is growing. However, Silver Hoof Games has decided to create its own service, which will be integrated into the new marketplace. This move is aimed at developing independent platforms to support creators and improve interaction with the audience.

Stable demand for board games in the online space: trends for 2023

Despite the economic difficulties of recent years, the board game market continues Show stable demand in online stores. Alexander Ermakov of Studio 101 asserts that sales remain high, although subject to seasonal fluctuations. Nikolai Malyshev of Lifestyle also emphasizes that while demand for expensive board games has declined, the overall market situation does not raise serious concerns. Importantly, board games remain popular across various age groups, which contributes to their resilience even in the face of economic instability. Traditional retail stores have seen a downward trend, which began two years ago amid the first outbreaks of COVID-19. "People have experienced a shift in consumer habits: they prefer online shopping to visiting physical stores," notes Nikolai Malyshev. Despite expectations of a recovery after the lifting of coronavirus restrictions, no positive changes have been seen. It is important to emphasize that online sales infrastructure has been actively developing in Russia, which has contributed to the growth of this segment. According to Ermakov, the number of order pickup points and the quality of courier services have improved significantly, making online shopping more convenient and accessible for consumers.

Experts emphasize the importance of retail sales for the sustainable development of the board game market. Dmitry Pavlov notes that without traditional sales and events such as game libraries and promotions, the board game market could face serious difficulties, which could lead to its decline in the future. This demonstrates the need for a combined approach to board game sales that will ensure their longevity and appeal to a wide audience. Sustainable development of this market segment requires active engagement with consumers and the implementation of new sales strategies.

Board Game Festivals: The Path to Industry Recovery

Board game festivals play a key role for developers, providing them with the opportunity to directly sell their products and establish contact with the audience. The larger the event, the higher the likelihood of success. After lengthy interruptions due to the COVID-19 pandemic, restrictions have finally been lifted, and events are once again taking place. This return offers creators new opportunities to reclaim their market position. However, fundamental changes in the board game industry are unlikely. It's important for developers to adapt to the new conditions and take advantage of the opportunities festivals offer to promote their games and engage with players.

Dmitry Pavlov asserts that game libraries and festivals are effective promotional tools, but don't expect immediate results from their resumption. This requires a long-term strategy. Sergey Rovenkov adds that his company receives approximately 50% of its revenue from such events, but cautions that festivals are not a one-size-fits-all solution to all problems. For successful promotion, it is important to take into account many factors and approach the organization of such events with careful planning.

Sales at festivals can fall for the same reasons as in retail. Participating in an exhibition in Moscow represents a significant financial investment, which doesn't always yield the expected results. It's important to carefully analyze your target audience, choose the right time and location for participation, and plan your promotion strategy in advance. This will help increase the chances of successful sales and make investments more justified.

The impact of festivals will be especially noticeable in October and November, when the new season begins. Sergey Rovenkov recommends paying attention to the Moscow festival "Rolecon", as well as events taking place in St. Petersburg, Chelyabinsk, and Kursk. These festivals promise a diverse program that will attract the attention of both locals and tourists. Participation in them can be an excellent opportunity for culture and art lovers to immerse themselves in an atmosphere of creativity and inspiration. Don't miss the chance to learn about new trends and discoveries in the world of festivals.

There are events aimed at a narrow target audience. For example, developers of children's and family games are recommended to attend the Moscow festival "Detcon". At St. Petersburg events such as "Granikon" and "Indicator", developers can establish useful contacts with publishers and like-minded people, which contributes to the development of future projects. These events provide unique opportunities to share experiences and increase visibility in the gaming industry.

Prospects for the Board Game Industry in Russia

Despite economic difficulties, including rising prices and disruptions in the production chain, Russian board game developers remain optimistic. Sergey Rovenkov, a participant in the St. Petersburg festival "Granikon", noted that almost all authors, regardless of the scale of their projects, gathered at the event. He did not notice any signs of apathy among the participants; on the contrary, everyone is actively developing new games, despite the existing uncertainty about the future. This dedication and desire to create quality content underscore the resilience of the Russian gaming industry.

Board game publishers and developers are focused on short-term plans, limiting themselves to the next six months. Nevertheless, they are confident that board games as a cultural phenomenon have a sustainable future. Alexander Ermakov notes that only a major cataclysm could cause this hobby to become as marginalized as it was in the 1990s. Sergey Rovenkov also doesn't believe board games will be marginalized, emphasizing that the support of major publishers and dedicated enthusiasts plays a key role in the industry's development. Both experts emphasize that, despite the existing challenges, they continue to work on new projects and successfully adapt to the changing conditions of the board game market.