You want to lecture me about how I have no inside knowledge regarding their finances, then you turn around and do the same thing.
They demonstrate that they are risk-averse through their various Twitter and forum posts. They fret about the size of print runs and such publicly. This is not a secret.
Ermm... no, I don't. And no they don't. You on the other hand assume that they are well off and can afford to do anything you're proposing.
In forum posts and through Twitter they "demonstrate" that they don't want to risk losing their company. That is not the same as being risk averse. That is just not being reckless.
Again: when they started the company, they risked a considerable amount of their own money. I don't see how you can describe that as "being risk averse". No entrepreneur is ever risk averse when they start their own company. That personal money they invested is potentially (partially) still in the company. It's not "being risk averse" to want that money back.
They've always stated that they don't have large margins on their runs and that they need previous runs to succeed in order to being able to afford funding future runs. In the beginning the number of copies they had printed was literally all they could afford. So they LITERALLY put all they had on the line. No sane person would call such a thing "risk averse". Meanwhile their overhead costs must've increased considerably, given how they have to travel more (abroad) to sign new deals, and given how they hired personnel to do some of the tasks they originally did themselves. Also, they've offered some more services to their customers. All those investments eat away (partially) any increase in profits they may have had over their runs in the meantime.
My point is by having a subscription service they have MORE data to make decision with than they have today. They know how many people DEFINITELY will buy X, Y and X+Y each release. Those sales are in the bank, so the speculation then becomes about how to handle the rest of the release. They are also appeasing their most committed fans by doing this, the ones that will put down max cash for each run. From there, they can do preorders or whatever else to finish out each release. It sounds like they wouldn't go this way due to production logistics, but who knows.
Again, not a very good point. First of all, they tried pre-orders, didn't like it for their way of working and basically ruled them out for the future. Not sure why you went there again..?
Secondly, as I stated above in a reply to another poster, the data they have from a subscription service is
valid only temporarily. Say that they have 5000 subscribers in January 2018. They negotiate with a company in the same month to do a run of 7000 copies for a particular game, based on their subscription base. Due to all kinds of circumstances, the release of that run is delayed to July 2018. Going by how long ago they've announced some of their partnerships, this is all but unimagineable. Meanwhile, 2000 people unsubscribe for various reasons (people don't like their output for several months and quit, Josh was too rude on Twitter, people can no longer afford it, competitors with better terms pop up, etc ...), so by July 2018 they have 3000 subscribers.
Meaning, they only have 3000 "sales in the bank" - as you stated it - by July, rather than the 5000 they thought they had in January. And the risk for them is way higher by July than they initially thought. So subscription service numbers aren't necessarily as reliable as you make it seem.
Regarding the concept of leaving money on the table, if you sell out in minutes or hours then you've left money on the table unless you believe you wouldn't sell any copies over the next days/weeks. It's a matter of tuning to find the right spot. Maybe for a game or two you end up with a couple hundred copies left for a while, but you make up for it on others.
It's not "leaving money on the table" when you need any money you got from selling out over the weekend immediately to fund new runs, pay yourself back the money you invested in the company, pay your employees, and re-invest the money in innovation. If you need that money right away, and you don't have it yet because your stock doesn't sell out, you would need to get it elsewhere, e.g. increase your debt with new loans. There is an end to amassing debts eventually, so you can't keep doing that. So whether they're "leaving money on the table", heavily depends on what their current financial situation is. You seem to know for a fact they are doing very well, and can afford to sit on hundreds of copies. Meanwhile Josh is time and again acting all nervous on Twitter when runs don't sell out fast enough (meaning: over 1 friggin' weekend).
There are easy solutions to all of those issues (a record company like Joyful Noise keeps two subscriber lists with less employees than LRG), but I'm not going to play armchair economist with you.
Only you did play armchair economist with me by comparing an indie record company with an indie video game publisher, because they are exactly the same thing?