Editing TSR, Inc. (section)

===TSR Hobbies, Inc. (1975–1983)===
{{Infobox company
| name          = TSR Hobbies, Inc.
| logo          = Tsr logo game wizards.png
| fate          = Split up
| successor     = TSR, Inc., TSR Ventures, TSR International and TSR Entertainment Corporation
| foundation    = 1975
| defunct       = 1983
| location      = [[Lake Geneva, Wisconsin]], United States
| industry      = [[Role-playing game]] publisher
| key_people    = [[Gary Gygax]], [[Brian Blume]], [[Kevin Blume]]
| products      = ''[[Dungeons & Dragons]]''
| num_employees = 
| parent        = 
| subsid        = Greenfield Needlewomen
}}

Brian Blume and Gary Gygax reorganized the business from a partnership to a corporation called TSR Hobbies, Inc. At first, it was a separate company to market miniatures and games from other companies, an enterprise which was also connected to the opening of the Dungeon hobby shop in Lake Geneva.<ref name="peterson522"/> TSR Hobbies then moved to buy out the old TSR partnership's assets. Brian's father, Melvin Blume, invested $20,000 in the nascent company which enabled it to buy out Donna Kaye's share of the original TSR partnership. On September 26, 1975, the assets of the former partnership were transferred to TSR Hobbies.<ref name="peterson535">{{harvnb|Peterson|2012|p=535}}</ref> Brian Blume became the largest shareholder, Melvin Blume the second largest, and Gary Gygax the third largest.<ref name="witwer23">{{harvnb|Witwer|2015|loc=+23: A Makeshift Solution}}</ref><ref name="history">{{cite web| url=http://www.wizards.com/dnd/DnDArchives_History.asp| title=The History of TSR| publisher=[[Wizards of the Coast]]| access-date=2005-08-20| archive-url=https://web.archive.org/web/20000818164322/http://www.wizards.com/dnd/DnDArchives_History.asp| url-status=dead| archive-date=2000-08-18}}</ref> Gygax served as president of TSR Hobbies, and Blume as vice president and secretary. The Dungeon hobby shop would become the effective headquarters of the company, including the offices of Blume and Gygax. TSR Hobbies subcontracted the printing and assembly work in October 1975, and the third printing of 2,000 copies of ''D&D'' sold out in five months.<ref name="peterson496"/> [[Tim Kask]] was hired in the autumn of 1975 as Periodicals Editor, and the first employee that TSR hired for full-time work.<ref name="witwer23"/>

''[[Empire of the Petal Throne]]'' was the first game product released by TSR Hobbies, followed by two ''D&D'' supplements, ''[[Greyhawk (supplement)|Greyhawk]]'' and ''[[Blackmoor (supplement)|Blackmoor]]''.<ref name="history"/> Also released in 1975 were the board game ''[[Dungeon!]]'' and the Wild West RPG ''[[Boot Hill (role-playing game)|Boot Hill]]''.<ref name="history"/> The company took $300,000 in revenues for the fiscal year of 1976.<ref name="inc"/> TSR started hosting the [[Gen Con]] Game Fair in 1976, and the first ''D&D'' open tournament was held at the convention that year.<ref name="history"/><ref name="D&Dfaq">{{cite web| url = https://www.wizards.com/dnd/DnDArchives_FAQ.asp| title = ''Dungeons & Dragons'' FAQ| access-date = 2021-06-30| publisher = [[Wizards of the Coast]]| archive-url = https://web.archive.org/web/20081002132129/http://www.wizards.com/dnd/DnDArchives_FAQ.asp| url-status = dead| archive-date = 2008-10-02}}</ref> ''D&D'' supplements ''[[Eldritch Wizardry]]'' and ''[[Gods, Demi-Gods & Heroes]]'' were released in 1976.<ref name="history"/> Also in 1976, the company opened The Dungeon Hobby Shop at 723 Williams Street and TSR Hobbies moved out of Gygax's home and into the building, with its offices upstairs from the hobby shop.<ref>Dungeon Hobby Shop Advertisement. "Discover the Dungeon". The Strategic Review, vol. II, no. 2, April 1976, pp. 12-13</ref>

TSR also began to branch the ''Dungeons & Dragons'' product into two: ''Dungeons & Dragons'' as a general audience product intended for novices, and ''[[Advanced Dungeons & Dragons]]'' (''AD&D'') for a more complicated product aimed at hardcore fans. In 1977, the ''[[Dungeons & Dragons Basic Set]]'' was released for ''D&D'', and the ''[[Monster Manual]]'' was released as the initial product for ''AD&D'', making TSR the first game company to publish a hardbound book. The next year, the ''AD&D'' ''[[Players Handbook]]''<!-- Not a typo--> was published, followed by a series of six [[Adventure (Dungeons & Dragons)|adventure modules]].<ref name="history"/> Due to the inclusion of the word "Advanced" in the title, TSR did not pay Dave Arneson any royalties on ''AD&D'' products, saying his co-creation rights extended to the base ''D&D'' name only.<ref name="riggs19">{{harvnb|Riggs|2022|pp=19–22; 99}}</ref> In late 1978, TSR Hobbies and the Dungeon Hobby Shop moved from 723 Williams Street into downtown [[Lake Geneva, Wisconsin|Lake Geneva]], to 772 West Main Street, with its offices once again located above the hobby shop.<ref name="history"/><ref>{{cite web|url=https://www.gygaxmemorialfund.org/lgam-24|title=24 - Hotel Clair|author=Gygax Memorial Fund}} Retrieved 2024-02-22.</ref> In 1979, the ''AD&D'' ''[[Dungeon Masters Guide]]''<!-- Not a typo--> was published, and radio ads featuring "Morley the Wizard" were broadcast,<ref name="history"/> a figure created "as the poster child for the softer, child-friendly image" promoted at that time.<ref name="arts-arcana">{{cite book |last1=Witwer |first1=Michael |title=[[Art & Arcana: A Visual History|Dungeons & Dragons Art & Arcana: a visual history]] |last2=Newman |first2=Kyle |last3=Peterson |first3=Jonathan |last4=Witwer |first4=Sam |last5=Manganiello |first5=Joe |date=October 2018 |publisher=[[Ten Speed Press]] |isbn=9780399580949 |pages=105, 107, 124, 277 |oclc=1033548473}}</ref> All of these core books would go on to be major hits; the ''D&D Basic Set'' sold well in 1977 and 1978, would sell over 100,000 copies in 1979, and would continue to be updated and re-released for years.<ref name="riggs19"/>

During this era, there were a number of competitors and unofficial supplements to ''D&D'' published, arguably in violation of TSR's copyright, which many ''D&D'' players used alongside the TSR books. Among these were the ''[[Arduin#The Arduin Trilogy|Arduin Grimoire]]'', the ''Manual of Aurenia'', and variants such as ''Warlock'' and ''[[Tunnels & Trolls]]''. TSR regarded these very warily, and in cases where they felt their trademarks were being misused, they issued cease-and-desist letters. More often than not, this legal posturing resulted in only slight changes to competitors' works, but caused significant animosity in the community.<ref name="peterson555">{{harvnb|Peterson|2012|p=555}}</ref>

In 1979, TSR signed a contract with [[Random House]] with unusual terms. In most deals between publishers and distributors, publishers are paid directly based on books sold downstream by the distributor to bookstores. In TSR's contract, however, Random House would loan money to TSR as an advance upon shipment of product from TSR to Random House, a loan equivalent to 27.3% of the suggested retail price. The arrangement was mutually beneficial at first: TSR could acquire money up front to fund their work, and not have to worry about immediate sales. Many of TSR's products had consistent sales over time, and the loans allowed the company to recoup the investment immediately and use the funds to make more books. Returns were generally low, leading to Random House's confidence in TSR. However, the arrangement would cause trouble later in the 1990s.<ref name="riggs164">{{harvnb|Riggs|2022|pp=164–170}}</ref>

Gygax granted exclusive rights to [[Games Workshop]] to distribute TSR products in the United Kingdom, after meeting with [[Ian Livingstone]] and [[Steve Jackson (UK game designer)|Steve Jackson]]. Games Workshop printed some original material and also printed their own versions of various ''D&D'' and ''AD&D'' titles in order to avoid high import costs. TSR was unable to reach an agreement with Games Workshop regarding a possible merger, so the company created the subsidiary TSR Hobbies UK Ltd, in 1980.<ref name="history"/> Gygax hired [[Don Turnbull (game designer)|Don Turnbull]] to lead the subsidiary, which would expand into continental Europe during the 1980s. TSR UK published a series of modules and the original ''[[Fiend Folio]]''. TSR UK also produced ''[[Imagine (game magazine)|Imagine]]'' magazine for 31 issues.

The first-published [[campaign setting]] for ''AD&D'', the [[Greyhawk|World of Greyhawk]], was introduced in 1980. The espionage role-playing game ''[[Top Secret (role-playing game)|Top Secret]]'' came out in 1980; reportedly, a note regarding a fictitious assassination plot on TSR stationery, as part of the playtesting of the new game, prompted the [[FBI]] to visit TSR's offices.<ref name="history"/> That same year, the [[D&D Adventurers League|Role Playing Game Association]] was founded to promote skillful roleplaying and unite players around the country.<ref name="history"/> In 1981, ''[[Inc. (magazine)|Inc.]]'' magazine listed TSR Hobbies among the hundred fastest-growing privately held U.S. companies.<ref name="inc">{{cite web|url=http://www.inc.com/magazine/19820201/3601.html|title=TSR Hobbies Mixes Fact and Fantasy|date=1982-02-01|author=Stewart Alsop II|archiveurl=https://web.archive.org/web/20130921025734/http://www.inc.com/magazine/19820201/3601.html|archivedate=September 21, 2013}}</ref> That same year, TSR Hobbies moved its offices again, into a former medical supply building with a warehouse attached. In 1982, TSR Hobbies broke the 20&nbsp;million sales mark.<ref name="history"/>

TSR Hobbies terminated [[Grenadier Miniatures]]'s license in 1982 and began to directly manufacture an [[Advanced Dungeons & Dragons Miniatures|''AD&D'' miniatures line]], followed by a toy line. Part of the licensing of the ''AD&D'' toy line went to [[LJN]]. Also that year, TSR introduced the ''[[Gangbusters (role-playing game)|Gangbusters]]'' and ''[[Star Frontiers]]'' role-playing games.<ref name="history"/> TSR established exclusive distribution for the ''D&D'' game in 1982 in 22 countries, with the game being translated first into French, followed by many other languages. In 1982, TSR established an educational department with the intention of developing curriculum programs for reading, math, history, and problem solving, with the most successful program among these the ''[[Endless Quest]]'' series of game books.<ref name="history"/>

Melvin Blume's shares were later transferred to his son Kevin Blume. After this, the leadership of TSR consisted of Kevin Blume, Brian Blume, and Gary Gygax. In contemporary articles from the early 1980s, Gygax said that the three worked as a team, and only proceeded with unanimous consent and buy-in. In interviews years later, Gygax downplayed his role, and described his position as primarily a powerless figurehead CEO, with Brian Blume as president of creative affairs and Kevin Blume as president of operations.<ref name="inc"/><ref name="riggs36">{{harvnb|Riggs|2022|pp=36–37}}</ref><ref name="Kyngdoms">{{cite web | last = Sacco | first = Ciro Alessandro | title = The Ultimate Interview with Gary Gygax | work = thekyngdoms.com | url = http://www.thekyngdoms.com/forums/viewtopic.php?t=37 | access-date = 2008-10-24}}</ref> In 1981, TSR Hobbies had revenues of $12.9&nbsp;million and a payroll of 130.<ref name="inc"/>

TSR Hobbies diversified by purchasing or starting new commercial ventures such as producing miniatures, expanding into toys and gifts, and adding an entertainment division to explore getting into films and television.<ref name="history"/> Many parts of this expansion were later criticized as bad investments and over-extension. Greenfield Needlewomen, a [[needle craft]] business, was one particularly criticized acquisition; it was owned by a cousin of the Blumes. Sales of D&D-themed needlecraft were abysmal, and the acquisition was criticized as [[nepotism]]. The company was similarly accused of favoring friends and relatives of the Blumes and Gygax in hiring. The management also used company funds to raise a shipwreck from [[Geneva Lake]] for no clear financial benefit. The company acquired the trademark and copyrights of the  magazine ''[[Amazing Stories]]'', although it had only ten thousand subscribers.<ref name="history"/><ref name="riggs45"/>

====Wargames====
Another acquisition was the 1982 takeover of [[Simulations Publications Inc.]] (SPI), one of the major publishers of wargames and wargaming magazines in North America. SPI was heavily in debt, and TSR agreed to give them a promissory note for several hundred thousand dollars, using SPI's assets as collateral. SPI immediately used the money to pay off its debts, leaving it cash-poor but debt-free. Less than two weeks later, TSR called in the note;<ref name="Grognard">{{cite web | url=https://grognard.com/zines/so/so43.txt | title=Why Did SPI Die? | author=Simonsen, Redmond | authorlink=Redmond A. Simonsen}}</ref> with no cash on hand, SPI was forced to hand over their operation to TSR.<ref name="history" /> Believing the wargame market to be a lucrative opportunity, TSR immediately released several SPI titles that were ready for publication but had been stranded by a lack of money for printing, such as ''[[Battle Over Britain]]'' and ''[[A Gleam of Bayonets: The Battle of Antietam|A Gleam of Bayonets]]''. TSR also reboxed and republished several popular SPI titles from the mid-1970s under the TSR logo, including ''[[Air War (game)|Air War]]'', ''[[Blue & Gray: Four American Civil War Battles|Blue & Gray]]'', and ''[[Napoleon's Last Battles]]''. But TSR soon learned that the main reason for SPI's large debt was that the wargame market had collapsed. When their wargames failed to sell, TSR halted all new game projects; in reaction, most SPI game designers resigned and moved to rival company [[Avalon Hill]], lured by the formation of a subsidiary specifically for them called [[Victory Games (Avalon Hill)|Victory Games]].<ref name=zoc>{{cite book | last =Lowood | first =Henry | title =Zones of Control: Perspectives on Wargaming | editor-last1 =Harrigan | editor-first1=Pat | editor-last2=Kirschenbaum | editor-first2=Matthew G. | contribution = War Engines | publisher =MIT Press | date =2016 | pages =90 | isbn =9780262033992}}</ref> TSR published a few wargames created by their own in-house designers, and had a hit with ''[[The Hunt for Red October (board game)|The Hunt for Red October]]'', but ten years after the SPI takeover, TSR abandoned the wargame market.