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» Wizards.Com Boards   » TCG News Discussion   » HASBRO statement from 12/27 (Page 1)

 
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Author Topic: HASBRO statement from 12/27
LizardOTC

Member # 124



posted January 07, 2003 01:26 PM      Profile for LizardOTC      Edit/Delete Post Report This Thread to Moderators
HASBRO's most recent prospectus, issued on 12/27/02, may provide some insights into corporate plans for the future and their efects on us as Pokémon players. This document is published on the web:

Hasbro Prospectus

[EDIT - Cleaned up link - BDS]

You will need to copy and paste the address, since it is too long for UBB to recognize it properly.

The prospectus describes the various brands and products produced by HASBRO and its subsidiaries. According to that description:

quote:
WIZARDS OF THE COAST trading card and roleplaying games include the popular MAGIC: THE GATHERING, DUNGEONS AND DRAGONS and HARRY POTTER trading card game, based on The New York Times best-selling novels.
There is no mention of the Pokémon brand, presumably because it is a licensed property, and not a wholly owned product.

Regarding the risks associated with products licensed from other companies, the document advises investors that:

quote:
In addition, competition in the industry could adversely impact our ability to secure, maintain, and renew popular licenses on beneficial terms, if at all, and to attract and retain the talented employees necessary to design, develop and market successful products. The loss of rights granted pursuant to any of our licensing agreements could have a material adverse effect on our business and
competitive position.

and later in the same section...

quote:
In addition, acquiring or renewing licenses may require the payment of minimum guaranteed royalties that we consider to be too high to be profitable, which may result in losing licenses we currently hold when they become available for renewal
And also...

quote:
Although we plan to focus greater attention and resources on our core owned and controlled brands, we cannot assure you that such efforts will produce revenue growth to replace the growth historically provided by acquisitions.
This is a statement from HASBRO.

HASBRO owns WotC.

WotC currently holds the license to produce the Pokémon TCG.

That license is up for renewal.

HASBRO does not seem to be too keen on maintaining licensed products, planning to focus on its own intellectual properties in the coming year.

Therefore...?

My intention in posting this is to call attention to a possible signal regarding the future of our game. I am hoping that holiday season sales of Pokémon were higher than expected, because HASBRO states:

quote:
OUR BUSINESS IS SEASONAL AND THEREFORE OUR ANNUAL OPERATING RESULTS WILL DEPEND, IN LARGE PART, ON OUR SALES DURING THE RELATIVELY BRIEF HOLIDAY SEASON. FURTHER, THIS SEASONALITY IS INCREASING, AS LARGE RETAILERS BECOME MORE EFFICIENT IN THEIR CONTROL OF INVENTORY LEVELS THROUGH QUICK RESPONSE MANAGEMENT TECHNIQUES. (caps NOT mine)
I do not know the sales figures, of course... but I think it just may be decision time for many brands inside HASBRO (and WotC). I think the Delegate Program (along with BZ and Super BZ) is a hopeful attempt to jumpstart sales of the Pokémon TCG. What do you think?

All of us who care about this game need to do everything in our power to support the game. We need positive economic results to convince HASBRO that the Pokémon TCG is worth maintaining.

I'm off to visit more stores as a delegate. I'm waiting impatiently to buy a boatload of Aquapolis... *Crosses fingers*

[ January 07, 2003, 03:21 PM: Message edited by: WizPog_BDS ]

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From: The Vast Midwestern Waste | Registered: Feb 2001  |  IP: Logged
yoshi1001

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posted January 07, 2003 01:40 PM      Profile for yoshi1001   Email yoshi1001    Edit/Delete Post Report This Thread to Moderators
Quite frankly I think that's reading a little too far in to assume everything there applies directly to us.

Of course, that doesn't mean we should get complacent. This may not apply in any of the ways implied (no headless chickens please [Roll Eyes] ), but it can't hurt to help.

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BJJ763

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posted January 07, 2003 01:54 PM      Profile for BJJ763   Email BJJ763    Edit/Delete Post Report This Thread to Moderators
While they could be talking about Pokémon, those statements fit Batman, which Hasbro has had for what 10 years? Now the Batman license is going to ToyBiz i think it was.

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KYDAD

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posted January 07, 2003 01:57 PM      Profile for KYDAD   Email KYDAD    Edit/Delete Post Report This Thread to Moderators
SEC disclosure rules mean that you have to put every possibility into the annual report in order to protect yourself from lawsuits. This is probably most of what they're doing.

It could also be that they are playing hardball with TPC in order to get the contract how they want it. You should never be in any negotiation unless you're willing to walk away if it doesn't work for you.

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LizardOTC

Member # 124



posted January 07, 2003 02:03 PM      Profile for LizardOTC      Edit/Delete Post Report This Thread to Moderators
Yes. I was in no way assuming that the statement applies only or directly to Pokémon.

If I was sure that the Pokémon license were going to be dropped, would I spend the next hour-and-a-half driving to two stores to delegate? Would I spend $100's on Aquapolis?

Clearly not. That would be... illogical.

I have great hopes. I am committed to doing all I can to make those hopes a reality.

[ January 07, 2003, 02:04 PM: Message edited by: LizardOTC ]

--------------------
"No! Try not. Do. Or do not. There is no try." -Yoda

"Sewage Portrayed As Meat...It's not just for breakfast anymore!" -LizardOTC

"Like a bad tooth and an unsteady foot is confidence in a faithless man in time of trouble." - Proverbs 25:19

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NoPoke

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posted January 07, 2003 02:10 PM      Profile for NoPoke   Email NoPoke    Edit/Delete Post Report This Thread to Moderators
I thought that harry Potter was a licensed brand?

No mention of Star Wars TCG either...

--------------------------------------------
after a very quick scan of the whole document....

Looks like they are either uncertain of mentioning pokemon or think that it would have an adverse effect on the placement. Not sure that it is safe to read anything into pokemons' absence from the filing. Obviously its not *good* that there is no mention of the brand. But its hard to judge if the opposite is therefore true.

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========================================
'Good News' or 'Bad News' but NOT NO NEWS

some people brag about their tournament results, me I'm gonna brag??? about what players have managed to get past me LOL

-------Hoodwinked---(things I won't get wrong again...)------

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IndigoMaster

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posted January 07, 2003 02:10 PM      Profile for IndigoMaster   Email IndigoMaster    Edit/Delete Post Report This Thread to Moderators
I dunno what to think...we all know that wotc not maintaining the license is a possibility. But none of us hope it happens or like to think about it. I personally...don't feel it nessesary to vent my views on the subject. I can just hope the game goes on.
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CmonIWanaPLaYa
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posted January 07, 2003 02:19 PM      Profile for CmonIWanaPLaYa      Edit/Delete Post Report This Thread to Moderators
Well, this could go along with the thread I started about the WotC store here. Maybe that is why they haven't received any information about wether they are going to be ALLOWED to do leagues and have Corporate support. "Things that make you go HMMMM" I used to love that song.

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SD_PokeMom

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posted January 07, 2003 02:23 PM      Profile for SD_PokeMom   Email SD_PokeMom    Edit/Delete Post Report This Thread to Moderators
Considering all the money I spent on Hasbro toys just a couple of weeks ago...both Pokémon (cards, the V-trainer and accessories, etc.) AND Star Wars (vehicles, action figures, game of Life, TCG cards...)...I can't help but be disturbed, reading this. Why mention ONE licensed property and not another?

I've NEVER considered myself a "headless chicken" [Roll Eyes] ...but Pokémon doesn't appear even ONCE in this document; ctrl-F and see for yourself. And frankly, this disturbs me...

'Mom [Frown]

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yoshi1001

Member # 825



posted January 07, 2003 02:27 PM      Profile for yoshi1001   Email yoshi1001    Edit/Delete Post Report This Thread to Moderators
Sorry if I insinuated anything, however, I have seen far too much damage caused by rampant speculation. We can't assume everything here applies to us...try living like that (on secod thought, don't).

If you're not doing that, good. I applaud you-focus is what is required.

There is raising concern, there is raising alarm where warranted, and then there is rasing panic where harmful. Some people seem to be far too good at that last one. Sorry to be such a pain about it, but historically speaking, the worst case scenario has generally been overstated.

[ January 07, 2003, 02:49 PM: Message edited by: yoshi1001 ]

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From: Janesville, Wisconsin | Registered: Feb 2001  |  IP: Logged
kurobatto
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posted January 07, 2003 03:21 PM      Profile for kurobatto   Email kurobatto    Edit/Delete Post Report This Thread to Moderators
quote:
WIZARDS OF THE COAST trading card and roleplaying games include the popular MAGIC: THE GATHERING, DUNGEONS AND DRAGONS and HARRY POTTER trading card game, based on The New York Times best-selling novels.
I think the reason there's no mention of Pokemon here is because all of those games are based off of The New York Times best-selling novels as said in the end of the sentence.

quote:
In addition, competition in the industry could adversely impact our ability to secure, maintain, and renew popular licenses on beneficial terms, if at all, and to attract and retain the talented employees necessary to design, develop and market successful products. The loss of rights granted pursuant to any of our licensing agreements could have a material adverse effect on our business and
competitive position.

They have quite a few licensed products, so this doesn't directly mention or describe Pokemon in any way.

quote:
In addition, acquiring or renewing licenses may require the payment of minimum guaranteed royalties that we consider to be too high to be profitable, which may result in losing licenses we currently hold when they become available for renewal
This doesn't suggest that Pokemon is not profitable and actually I'm pretty sure that is very profitable.

quote:
OUR BUSINESS IS SEASONAL AND THEREFORE OUR ANNUAL OPERATING RESULTS WILL DEPEND, IN LARGE PART, ON OUR SALES DURING THE RELATIVELY BRIEF HOLIDAY SEASON. FURTHER, THIS SEASONALITY IS INCREASING, AS LARGE RETAILERS BECOME MORE EFFICIENT IN THEIR CONTROL OF INVENTORY LEVELS THROUGH QUICK RESPONSE MANAGEMENT TECHNIQUES. (caps NOT mine)
Who is to say that Pokemon didn't do well in the holiday season? I would think that it did the best actually, next to Magic in the TCG department.

Ok seriously, I think you are all overhyping the "Hasbro/WotC is going to drop Pokemon" thing. Pokemon does so much better than WotC's other games except Magic, I just don't think it would make sense to drop it. If they HAVE to drop something, drop something useless like MLB, Chainmail, or whatever because those games don't have a fourth of the Pokemon player base ranked in the DCI. All this riot does for the Pokemon community is cause people to worry. I highly doubt WotC will drop Pokemon. Enough with these types of posts people, it's just tiring to hear the same thing that Pokemon will be dropped over and over again. Everyone needs to lighten up or worry about more realistic things like how soon the CS schedule will be released.

--------------------
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nick15

Member # 142



posted January 07, 2003 04:10 PM      Profile for nick15   Email nick15    Edit/Delete Post Report This Thread to Moderators
WIZARDS OF THE COAST trading card and roleplaying games include the popular MAGIC: THE GATHERING, DUNGEONS AND DRAGONS and HARRY POTTER trading card game, based on The New York Times best-selling novels.

Wait... why didn't it mention Star Wars and all the Showdown Sports games?? Boy, do I fear for those game's futures...

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From: Dukhovskoknabilebskohatsk, Russia | Registered: Feb 2001  |  IP: Logged
LizardOTC

Member # 124



posted January 07, 2003 04:55 PM      Profile for LizardOTC      Edit/Delete Post Report This Thread to Moderators
I just got back from visiting two stores as a delegate. I am looking for a Professor in the Milwaukee area who wants to run a BattleZone. I have an interested store, but I already run two Zones and additional twice-monthly DCI tourneys. Any takers?

On the subject of this thread... Look: I am not trying to be an alarmist. I am as committed to promoting and maintaining Pokémon as anyone.

Why else do you suppose I read things published by HASBRO?

Let's look at a document where they do mention Pokémon: HASBRO's 3rd Quarter Report

In it, we find the following:

quote:
Alan G. Hassenfeld, Chairman and Chief Executive Officer, said, "We are encouraged by our accomplishments this quarter. We remained focused on improving profitability for shareholders, managing our bottom line effectively despite a revenue decline. In examining our revenue results more closely, non-core products such as licensed trading card games and robotic pets were the primary reason for the top line decrease this quarter."
Again, no direct mention of Pokémon, right?

WRONG:

quote:
...revenues were down, primarily due to Pokemon and Harry Potter trading card games, offset in part by strong revenues from many core brands including Transformers, Play-Doh, Micro-Machines and Magic the Gathering trading card games.
Oh, and BTW, only the HP game is based on NYT best-selling novels (the Potter Series); the others are not.

Again, I want to stress that my reaction to all this is to work harder to promote the game, and yes even buy more cards than ever, not run around like a headless chicken.

[ January 08, 2003, 08:17 AM: Message edited by: LizardOTC ]

--------------------
"No! Try not. Do. Or do not. There is no try." -Yoda

"Sewage Portrayed As Meat...It's not just for breakfast anymore!" -LizardOTC

"Like a bad tooth and an unsteady foot is confidence in a faithless man in time of trouble." - Proverbs 25:19

From: The Vast Midwestern Waste | Registered: Feb 2001  |  IP: Logged
yoshi1001

Member # 825



posted January 07, 2003 05:13 PM      Profile for yoshi1001   Email yoshi1001    Edit/Delete Post Report This Thread to Moderators
Lizard, I never meant you were a headless chicken. Clearly you are not, as you are attemting to improve things in your area. The "headless chickens" are those who spend more time talking about how Pokemon is "dying" than doing something positive about it.

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kurobatto
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posted January 07, 2003 05:22 PM      Profile for kurobatto   Email kurobatto    Edit/Delete Post Report This Thread to Moderators
Yeah, I was wrong about the books... I know Magic, D&D and HP all have books, so that was my best guess as to why those were the only ones mentioned...

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nick15

Member # 142



posted January 07, 2003 10:06 PM      Profile for nick15   Email nick15    Edit/Delete Post Report This Thread to Moderators
Low revenue doesn't always mean that the game will be axed. If things don't go well, Hasbro could always slim down the budget a tad so that they even out in the end.

I don't fear for Pokémon's life; I fear for its budget. But Wizards will definately see $200-$300 of my money on Aquapolis. I suggest everyone else with money to spend does the same. [Wink]

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Planteon
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posted January 08, 2003 12:23 AM      Profile for Planteon      Edit/Delete Post Report This Thread to Moderators
Although the document is written to cover Hasbro's back if things go bad, it is worrying that "Pokémon" doesn't get mentioned at all. My guess is that Hasbro are concerned that the cost of Pokémon TCG licence-renewal may become to high and that they then will have to drop the game. This would also fit well with the fact that WotC are releasing Pokémon TCG cards faster than they used to (combining two Japanese sets into one for Aquapolis and most likely also for Skyridge) so that they will have released all the cards they can before the license runs out.

My gut feeling (based on no facts at all) is, however, that WotC will get a renewal of the license and that we'll see them releasing sets after Skyridge...

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ukpokemonpro

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posted January 08, 2003 01:27 AM      Profile for ukpokemonpro   Email ukpokemonpro    Edit/Delete Post Report This Thread to Moderators
And did they mention the fines Hasbro had imposed in Europe and the UK?

They really hit the bottom line too!

Basically we all know that there are people within Hasbro that do not like Pokemon. They don't like the deal and the restrictions that puts on them.

What we need to do is as LizardOTC has already said is not panic. We need to prove Hasbro's anti-pokemon guys and gals wrong, we need to buy product, support OP and play the game.

What we don't need to do is PANIC!! Be aware, be sensible and support the game. It ain't over till the Snorlax sings after all [Cool]

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ukpokemonpro

"a meaningless title is just that ... meaningless"

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quote the judge...

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NoPoke

Member # 42315


posted January 08, 2003 02:31 AM      Profile for NoPoke   Email NoPoke    Edit/Delete Post Report This Thread to Moderators
quote:
the Q3 statement was that international revenues for HP and Pokemon were down.
so blame Europe! no wait later on ...

quote:
The impaired goodwill was entirely related to the U.S. Toys segment.
so its USA's fault.

Then there is the fine for alledged price fixing.....

quote:
.anticipated range of loss for the two
cases of approximately GBP160,000 to GBP26,000,000..

quote:
..we previously determined that there was no amount within this range which was a better estimate......in accordance with applicable accounting requirements we.......accrued a charge ....of GBP160,000.
The fine is currently arounf 5,000,000GBP!

So its the accounting laws that are to blame.

-------

Wait until they see the Q4 revenues for pokemon TCG in Europe... what with the Nintendo ban on sales in Europe.....

its all Nintendo's fault

So my guess is that what we currently see is 'the Blame Culture' in action within a large conglomerate... truth and objectivity get lost in the mire.

=============================================
So what to do.... 'headless chicken', the-sky-is-falling mode? Or realise that Hasbro has problems: and before they can fix the problems they have to acknowledge what those problems are.

I don't see anything other than a reasoned analysis in Lizard's post...his conclusions that it is 'decision time' within Hasbro seems fair, also the conclusion that BZ is a good indication of the companies commitment to pokemon.

As Lizard points out the best thing we can do is promote the game and get new players involved.

[ January 08, 2003, 02:53 AM: Message edited by: NoPoke ]

--------------------
========================================
'Good News' or 'Bad News' but NOT NO NEWS

some people brag about their tournament results, me I'm gonna brag??? about what players have managed to get past me LOL

-------Hoodwinked---(things I won't get wrong again...)------

'legal stalling' : game loss at least
'only joking' on misreported match results: DQ Yep its that serious!
The prize swap penalty as it applies to shuffling.

From: Crawley England | Registered: Sep 2001  |  IP: Logged
LizardOTC

Member # 124



posted January 08, 2003 03:34 AM      Profile for LizardOTC      Edit/Delete Post Report This Thread to Moderators
quote:
Originally posted by nick15:
I don't fear for Pokémon's life; I fear for its budget. But Wizards will definately see $200-$300 of my money on Aquapolis. I suggest everyone else with money to spend does the same. [Wink]

Yes, exactly!

We need accelerating sales to spur corporate investment in 'our' product. This is why it is important for us to expand OP wherever possible. OP gets people buying again! That's why I'm working hard as a delegate to get more stores onboard for BattleZone.

This ties in well with Aquapolis purchases.

I already have 5 boxes coming through ebay and a case of 6 more coming through my local shop.

Much of that will be drafted by my local players in tournaments, which I will TO and judge. The entry fees will reimburse me (barely) for the product and prizes, and I will have a great time doing it.

--------------------
"No! Try not. Do. Or do not. There is no try." -Yoda

"Sewage Portrayed As Meat...It's not just for breakfast anymore!" -LizardOTC

"Like a bad tooth and an unsteady foot is confidence in a faithless man in time of trouble." - Proverbs 25:19

From: The Vast Midwestern Waste | Registered: Feb 2001  |  IP: Logged
BJJ763

Member # 158



posted January 08, 2003 04:55 AM      Profile for BJJ763   Email BJJ763    Edit/Delete Post Report This Thread to Moderators
Awww come on, can't we run around like a headless chicken instead? It's more fun and it is simpler to do than go out and promote the game. Geez you guys are no fun..... [Turkey2]

Wonders why Lizard hasn't put a Graemlin of a headless chicken running around.....

Oh yeah so far i've bought 18 boxes (3 cases). Most of that'll go into the boys' collections. Then decks. Or trades. [Evil Smirk]

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From: Warwick RI USA | Registered: Feb 2001  |  IP: Logged
Baboon

Member # 16933


posted January 08, 2003 12:37 PM      Profile for Baboon   Email Baboon    Edit/Delete Post Report This Thread to Moderators
Well, I'm getting one box of E2, and hopefully one of E3 also, when they come out. Neither my family nor I have the money to buy $80 boxes in multiples. But, I have been trying to keep interest in the game in a different way, writing my *adds* 115 articles and lists and so on, for Pokeschool. By writing new material so frequently (every 2 or 3 days), it keeps people interested, as far as I know.

If you don't personally have the money to buy lots of cards, you could go my route, and cover the Internet portion of the game. If you keep people interested via the internet, the odds are, they'll keep buying cards!

I don't like to see people jumping to conclusions, so I won't. [Smile]

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From: Pennsylvania | Registered: Apr 2001  |  IP: Logged
LizardOTC

Member # 124



posted January 08, 2003 02:15 PM      Profile for LizardOTC      Edit/Delete Post Report This Thread to Moderators
quote:
Originally posted by BJJ763:
Wonders why Lizard hasn't put a Graemlin of a headless chicken running around.....

I'm shocked.

As a moderator, you of all people must be aware of the prohibition against posting violent images on WotC boards!

The gory sight of a freshly decapitated chicken is bound to be more than our younger members should see.

I will, however, give you an image of the chicken just before its head blew off:



That'll just have to do.

Baboon: Excellent! There are a huge number of ways that people can contribute. Anything that gets/keeps people interested and buying cards is a huge plus. Keep on writing! I certainly did not mean that people have to buy cards by the caseload to have a positive impact.

Even simply bringing a friend with you (who has never played or quit and is coming back) to BattleZone is one great way to keep the game growing!

--------------------
"No! Try not. Do. Or do not. There is no try." -Yoda

"Sewage Portrayed As Meat...It's not just for breakfast anymore!" -LizardOTC

"Like a bad tooth and an unsteady foot is confidence in a faithless man in time of trouble." - Proverbs 25:19

From: The Vast Midwestern Waste | Registered: Feb 2001  |  IP: Logged
Martin Moreno
Member
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posted January 08, 2003 06:33 PM      Profile for Martin Moreno   Email Martin Moreno    Edit/Delete Post Report This Thread to Moderators
Lizard, what if we have no friends? That may be a problem for me..

--------------------
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From: Dallas Texas | Registered: Sep 2002  |  IP: Logged
yoshi1001

Member # 825



posted January 08, 2003 06:48 PM      Profile for yoshi1001   Email yoshi1001    Edit/Delete Post Report This Thread to Moderators
quote:
Originally posted by Martin Moreno:
Lizard, what if we have no friends? That may be a problem for me..

This one is just too easy... [Wink]

Note to self: In future, use less violent metaphors.

Actually I'm rather pleased with how things have turned out here. Sorry if I overreacted attempting to prevent overreaction.

--------------------
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From: Janesville, Wisconsin | Registered: Feb 2001  |  IP: Logged


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