The board game industry, because of recent acquisitions and mergers, has become dominated by several companies, especially Hasbro and Mattel. These two companies, and a few others (such as Pressman and Warren Industries), monopolize the major retail outlets (Wal-Mart, Target, Toys 'R Us, and K-Mart) who literally rent shelf space to these game companies. This prevents small game companies from having access to customers of these retail stores and forces them to sell games through local game and hobby shops as well as directly to the public (such as via online sales).

This vast difference between the giant game companies and small companies in terms of access to consumers and number of sales made is neither an advantage to the larger companies nor a hindrance to the small companies for several reasons. The major companies have immense overhead expenses and must also price their products as competitively as possible in order for them to be sold at the major retail outlets. As such, the large game companies won’t sell a game unless they believe it will sell at least 300,000 units per year, and aim to keep the retail price at or below $19.95. Small companies, some of which sell only one product, have minimal overhead expenses and can price their products in a manner that is profitable for them without as much concern for the competitiveness of the price (which puts many of their games in the $30 to $40 range). Small companies can also be profitable with the sale of only 5,000 units per year, and possibly even less than that.

There is also an important difference in the types of games produced by the large and small game companies. The major retail outlets require that any new games have a third party affiliation, meaning they essentially have to be ancillary products of television shows, movies, cartoons, or other media already known to the public, and leads to games of lesser quality and originality. Therefore, instant theme recognition is the most important factor when the large companies create new games.

Smaller game companies don’t have this restriction and can produce anything they believe will not only be appealing to consumers, but are fun, entertaining, and as creative and original as possible. In essence, the trade-off is that smaller game companies typically produce games of better quality, but must deal with limited exposure to the public and fewer sales.

The outlook for the sale of board games is always good since they continue to be big sellers and are very popular because they promote social interaction among friends and family in a way that computers and video games can’t. Board games are also recession-proof because of their relatively cheap cost compared to other forms of entertainment. In fact, products like board games are the first things, not the last, that people spend money on during recessionary times. This last point is especially important given the state of the economy today and the bleek outlook for the future.

Let's hope that things turn around quickly if the economy does go downhill, but let's also hope more small board game companies continue to spring up and give people additional alternatives for ways to spend time with others. Since Hasbro, Mattel, and the other giants of the industry can't be counted on to invent anything new and refreshing, it's the small start-ups that people should continue turn to for the latest games that are innovative and fun. Willow Tree Games welcomes the competition!