How Console Piracy Affects Gaming
Thanks to GameSpy for posting a three-part article discussing the problems of pirated console games, and the steps being taken to combat the problem. The article talks to IDSA boss Doug Lowenstein, and suggests that "..console piracy is a worldwide industry, as multi-national as wireless telephones or McDonalds hamburgers.", also contrasting the piracy problems of the major manufacturers: "Nintendo's piracy problems are more localized than those of Sony and Microsoft. While GameCube piracy has not been a problem, Game Boy piracy, on the other hand, has proliferated."
When Microsoft, Sony and Nintendo banded together to make Lik-Sang stop selling its "back-up" products, I think it stopped piracy only to a certain extent. Now people just go else where. There will always be pirates and people that buy and make illegal games. Piracy affects the ability for certain game makers to make good games, because if they don't recieve income from games in the past, they will be unable to create games in the future.
Wee all know that most people wouldn't pirate a game that they would want to buy in the first place.
We really need to worry about more serious things.
I think the vast majority of people just go to the store and buy their games--either when they come out, when they get cheaper, used, whatever--and the actual percentage of people who mod their conosles is relatively small. Obviously you'd have to study this, but like the interview says, they aren't hurting.
:)
However, what about the people who do mod their consoles and download games? I knew a guy who had tons of Playstation games and almost every Dreamcast game period. He had more games than he could ever buy, and he was a college student. He still spent what money he had on Playstation and Dreamcast peripherals and whatnot.
So how much money did the big video game companies lose on him personally? Probably the price of a few games, at most. And how much did they make? Well, I don't know, but I had the opportunity to try out just about any game I wanted to for the Playstation and the Dreamcast, without having to buy it. Now I have a Playstation, and I have quite a few games for it, all legal.
So I guess the question here is, does the price of the one or two games the average modder would otherwise end up having to pay for outweigh the incredible amount of free advertising they do?
Personally, I'd say their time would be better spent going after the professional pirates, who can produce professional-looking games at base manufacturing costs. And I'd say the same thing to the RIAA and the MPAA. Just as long as you aren't actively screwing over the vast majority of law-abiding customers, you have nothing to fear; this is probably why the RIAA is so scared right now.
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Is the console 'backup' makers open chip firmware and tracings so that anybody can make those devices.
Lets see how Console makers like them apples.
How much do the console companies charge for games in South America and Asia, anyhow (and how many do they ship)? If it's the same price, then I'd wager that a lot more people can't afford them (or consoles in general) in the first place.
Also, were these professionally done, or just cheap home CD-burner jobs?
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I think I talked about this before, but now I get to post early so more people will see it!
Pretty much piracy is a double edged sword. If your system is pirateable like MS or Sony you get increased market share. But at the same time if your system is unpirateable you get more profit per sale.
Check this. Playstation games are pirateable, probably the most pirated games ever. The PS1 is a cheap and easily obtainable and moddable piece of hardware. Low income people (most of the world) can afford to get the Playstation because they can get the hardware cheap and can pirate games. I know a lot of people who have PSOnes. Sometimes I think I'm the only person without one. But all of them that I know have both legitimate and pirated/imported games. Because games are pirateable more people buy the system, and those who own the system are highly likely to buy a few legitimate games. However, because of piracy you will have a few people who would have and could have bought the game, but pirate instead. And of course if your system is pirateable there is the extra revenue you get by winning lawsuits against pirates.
Then you look at an unpirateable system like the cube. Everyone who owns a cube paid for it. They paid for every game they own and every accesory for the system. So on every sale Nintendo makes profit. The only people who own a cube are people who want it and can afford it. Nobody else has one, so Nintendo's market share is low. But when a game comes out for the cube that is awesome, like wind waker, it is instantly a million seller. Everyone who has the system buys the game.
So, piracy good and bad at the same time. Market share or profit margin? I don't see Nintendo going out of business any time soon, but I don't see sony going out either. But I do see XboX turning a loss despite higher market share in the US over the cube. Hmmmm.
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I didn't notice any problem with the quality of the games, I guess extensive play will be required. <bsa-protection>What a pity I immediately destroyed the cartridge in disgust at the ripping off of the poor software giants and movie studio execs who had licensed their preciousss IP.</bsa-protection>
However, if I had played it extensively, I'm sure I would have noticed some of the false advertising on the box compared to its contents. While the four gameboy advance games (Harry Potter/Mario Advance 2/Lord of the Rings/Shrek: Hassle in the Castle) I'm sure would've been as advertised, I noticed that Dig Dog (sic) was shown on the cover as having Doraemon characters in it, I guess due to Dig Dug's resemblance to an earless, robotic cat and Doraemon's relative popularity in SE Asia. There would've been some wierd games too like "King of Ghost."
Yes, 115 games in all... but most of those were old gameboy games that I doubt would sell outside of Asia anyway... like two Majong games...
<bsa-protection>Oh well, all hail BSA/MPAA/RIAA and their continuing war against copyright infringement. Their neverending quest to screw up every computer everywhere and crush legitimate reverse engineering projects like Bleem!, Gameboy Advance Flash Cartridges and Freecraft has inspired me to behave morally whenever I see anyone try to infringe their preciousss IP.</bsa-protection> Of course, some might say that in such a war, morality has become a gray area....
All the creatures will die, And all the things will be broken. That's the law of samurai. (Jubai, 1605)
I never would've got into computers if it wasn't for piracy. I bought my C64 and later the Amiga because of the easy access to games on BBSs and personal trading with friends. I was a kid so I couldn't even afford to buy most of the games anyway (maybe one or two a year at best) so nobody was losing any money. Now that I'm older and have some cash I don't pirate my games, but still only buy one or two a year because most of the titles just aren't worth it. :-)
One thing to remember in all of this is where these companies get their profits. Profit is not made on selling systems, but on selling and licensing games. The X-Box costs about $300-400 a pop to produce (don't quote me on that). MS loses money on each X-Box they sell. I do not know about Sony or Nintendo, but they may sell at or below cost as well. You have probably read the business philosophy, "Give away the razors, sell the hell out of the blades." They give away the consoles and sell the games. Nobody pirates the consoles, they pirate the games, and that's where the profit comes from.
The cancel button is your friend. Do not hesitate to use it.
just wanted to say that.
When the companies refuse to make available where there is a demand games which are available in other regions, this of course encourages piracy.
This is very similar to the region system in DVD's, which does nothing but encourage piracy, DeCSS, and region-free hacks of players because the companies often never make certain material available in certain regions.
In situations like this, the problem is not piracy: piracy is a symptom and result of the companies inexplicably refusing to take money for games (or movies) that the public wants to buy.
Don't blame Durga. I voted for Centauri.
"The X-Box costs about $300-400 a pop to produce (don't quote me on that). MS loses money on each X-Box they sell. "
Will this always be the case? Typically, the same PC at the same speed, with the same hard disk becomes cheaper to produce as time goes on. Since an X is like a PC, if Microsoft is selling the same X-box that they started with, does this mean that they lose less and less money on each unit sold as the months go by, and eventually they will break even (unless they upgrade the platform?)
Don't blame Durga. I voted for Centauri.
I wonder how many console games are actually copied in North America? Especially the "current generation" of consoles - I don't think I know anyone with pirated versions of X-Box, GC, or PS2 software.
I think PC Piracy is a much bigger problem - I do know more than one person who will d/l software. And even large than that, is the borrowing/cracking of games between friends. I'm sure most purchased PC games make it onto more than one machine.
"They don't make the games for free, therefore they are at fault because there is a demand for free games?"
No, that wasn't it at all, Mr A.C. You missed my point. My point was that they often refuse to sell the games (or DVDs) *at all* in certain regions, which leaves piracy as the *only* method of getting the games.
"Publishers don't localize games into Russian because it is not profitable to do so."
How much overhead or cost to the company in letting the Russian distributors buy the games and distribute them in Russia? Very little.
"So are you saying the publisher is at fault because they don't make the game in Russian, when it would be impossible to sell that game in Russian because the market is saturated with illegal copies?"
No, in this instance the publisher would be remiss if they refused to sell legally the exact sort of games that are saturating the pirate market. If the pirates in Russia love the untranslated English games, then why aren't the publishers selling legal copies of these?
Producing games but refusing to sell them to those who would like buy them does have an effect of encouraging piracy among those who are prevented from buying them.
Don't blame Durga. I voted for Centauri.
This is going to continue to be a problem untill consumers have a reason to stop doing it. If that means the industry dies, its unavoidable as far as I can see.
Likewise, enforcement will never ever reach majority level, and even then won't stop the problem. Online games w/ a key-challenge kind of deal, where signifigant portions of the game logic rely on the game server would fix the problem, but what happens if the server goes down? And is this giving too much control to the game company? Methinks so.
(scratches head) I dunno. There has to be a solution?
__________
Love conquers all... except CANCER
Gameboy / GBA - Piracy High - Success High
Play Station - Piracy High - Success High
N64 - Piracy low - Success Low
Play Station 2 - Piracy High - Success High
GameCube - Piracy none - Success Low
That may not say Everything, But it sure says Something.
microsoft is trying to get a foothold in the market, and so are selling below cost. XBOXs are sold at near 100$US loss. they dont want to make a profit on XBOX, they want customer loyalty. THEN they plan to make XBOX 2 and dominate the market..
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Next week on GameSpy, we will look at how GameSpy has hurt gaming...
On Wall Street they say "buy low, sell high" On the pad we say, "buy high, sell high" Isn't that somehow better?
OK, so they can sell a number of games while there are many being pirated and still keep a profit (even if it's a little one)? Maybe it's time for them to realize that consumers are unwilling to pay these high prices and that they should lower prices to meet consumer demand. If they lowered prices it may reduce piracy and increase profits from their current state. Honestly, they are never going to be able to stop people from pirating games...people are just too smart.
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When you aren't rich and you want to play video games, what do you do? You get them for free if possible. Am I to feel terribly sorry for the people that are reaping in millions if not billions over losses do to piracy? Hiding behind legality is just a superficial way of avoiding the point. Rich people make money off video games and people with a lot of meaningless income buy them. If all piracy ended tomorrow the prices for video games would stay exactly the same. The software programmers are getting screwed by their bosses, or should I say "owners", not by pirates.
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