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Piracy Helping Larger Game Developers?

Carlos Camacho writes "Piracy has been in the news recently within the game developer, and game player communities. You've seen all arguments against piracy in the past... Or have you? GBA and Mac game developer Aaron Fothergill of Strange Flavour Software wrote iDevGames a guest-editorial that will hopefully lead more users who copy games to re-think exactly it is that they are hurting. 'One of tenets of the software thief, is that "software is too expensive." They will then usually go on to bemoan how the 'giants' of the industry treat users unfairly and how stealing their software is their way of getting at 'the man.' Unfortunately, little do they realise, that the opposite is happening! Instead, rampant software theft benefits the 100 stone gorillas at the expense of new products that would otherwise be able to compete on price and features, resulting in only the big monopolistic companies keeping their products in the market and being able to control it'."

34 of 112 comments (clear)

  1. Thank you, Captain Obvious! by orkysoft · · Score: 5, Insightful

    I guess it still had to be said for the clue-impaired.

    How do you think Microsoft got so big? People used to copy DOS and Windows, and when their companies were getting computers, guess what software their employees were familiar with, and which was thus bought?

    Same thing with Photoshop. It's really expensive, and gets pirated a lot. Instead, people could have bought Paint Shop Pro or downloaded The Gimp.

    Software piracy makes you serve as free advertising for the "victim" company, and when it feels like it, it can sue you for megabucks. Do the math, people (preferably not using a pirated copy of Mathematica. Get GNU Octave instead)!

    --

    I suffer from attention surplus disorder.
    1. Re:Thank you, Captain Obvious! by Pluvius · · Score: 3, Insightful

      Same thing with Photoshop. It's really expensive, and gets pirated a lot. Instead, people could have bought Paint Shop Pro or downloaded The Gimp.

      That's the way it works with applications (though I don't agree with your DOS/Windows example). Games are slightly different, because they don't directly compete with each other (except in scattered cases, like HL2 versus Doom 3). In this case, we assume that people pirate games from both small publishers and large ones (not exactly a stretch). The large ones can take the hit in profits, but the small ones can't, so they go out of business.

      As far as the argument itself goes, it's something I haven't heard before, but it still seems to rely on the idea that all piracy translates into lost profits (which is almost certainly not true). I do agree that if you're going to pirate, you're better off pirating the big games and buying the small ones (assuming that the small ones are worth buying, obviously).

      Rob (There's also the fact that just because pirates allow publishers to charge $50 a game doesn't mean that the publishers have to)

    2. Re:Thank you, Captain Obvious! by robson · · Score: 4, Insightful

      There's also the fact that just because pirates allow publishers to charge $50 a game doesn't mean that the publishers have to

      You know, this diverges from your main point, but I'd like to point out that games have a fundamental economic problem moving forward: The cost to make games is rising, but the price of games isn't.

      Atari 2600 cartridges, the first mass-market home video games, cost about $30 each. Fast forward 25 years. Last week I bought "The Suffering" for the PS2 for $45.

      Now, I don't have precise numbers for the cost of development of 2600 games, but I know most were created by a single person who did all the programming, art, music, etc. Compare that with development today, which involves massive teams with dedicated departments for engineering, design, art, animation, and music. However, because of market forces, developers/publishers can't charge more for games today. The effect is that only the big, big hits make their money back. There's massive risk involved in simply developing and publishing a video game.

      Thus, you see publishers trying to reduce risk wherever possible, and what could be more risky than innovation? If you complain about clone after clone, look carefully at your own buying habits. (Obviously, I'm not talking to you, Pluvius -- I'm just speaking generally.)

    3. Re:Thank you, Captain Obvious! by Pluvius · · Score: 2, Interesting

      The only problem with this line of argument is that after development, games only cost maybe $5 per unit to make. It's possible that if prices were lowered, the lower profit per unit would be made up in volume. Of course, it's really hard to tell if game prices are on the wrong side of the cost-sales curve or not, especially since different games can have different curves.

      Rob

    4. Re:Thank you, Captain Obvious! by Echnin · · Score: 2, Insightful

      Also consider that games today are selling way, way more copies than they ever did back in the Atari 2600 days. Really makes it a bit easier to earn back revenues.

      --
      Lalala
    5. Re:Thank you, Captain Obvious! by danila · · Score: 2, Insightful

      Guess what, I'd rather use a pirated version of Photoshop or PhotoImpact and live with the fact that I am not stimulating competition, than part with a few hundred dollars. I happily buy pirated games, simply because I don't care that much about the market. Let the big market players, or small players, or medium-sized players win, I don't care. And I don't care if game players lose. I personally win.

      You need to realise that the consumers can be divided into two groups - those who pay for software and those who don't. Those who pay for it, vote with their dollars. Those who don't, have no influence on the result, but they are happy with that. It's the same as with the presidential elections, some people will come to the voting booths and case their vote, others will spend the time the way they want it, but will have no influence on the outcome. You can't blame the second group, because it's their right to make such decision. And if they don't care, it's the correct decision.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
  2. That's an interesting argument. by 00420 · · Score: 3, Interesting

    I've never thought of it that way before.

    Personally the reason I don't have any pirated software is I've found everything I need on packages.gentoo.org, and freshmeat.net. (With the exception of a few games, which I was glad to pay for).

    I do understand why people pirate some software, like Photoshop, Autocad, etc... They're industry standard and too damn expensive. And, I can see how this could potentially block out smaller competitors.

    However, due to the continuing growth in popluarity of OSS, the software industry is destined to change. Piracy isn't any concern for OSS.

    1. Re:That's an interesting argument. by leviramsey · · Score: 4, Insightful

      However, OSS won't become dominant unless and until piracy is eradicated. Freedom doesn't matter to most users (for all the pontificating about the draconian EULAs that you read on Slashdot, Microsoft et al are smart enough to know not to be too draconian on the common man). The only valid arguments for OSS that remain are quality and price (which are combined into value).

      The quality argument is difficult to assess, and it varies from program to program. GIMP is still fairly far from Photoshop. OSS GUIs are playing leapfrog with Windows (KDE/GNOME have the lead on XP at the moment, but the next revision of Windows will likely see Windows retake the lead in that competition) and are probably somewhat behind OS X. And even quality won't necessarily beat an entrenched base, due to market inertia.

      That leaves price. If OSS costs nothing, but so does pirated software, then it's a push, so the value judgement is deferred to quality, with inertia playing a role.

      Now, if all of a sudden, everybody was forced to buy Office at full-price, OpenOffice would gain so much traction in the marketplace, it would likely be at parity with Office in a year and have hegemony in the market thereafter.

  3. How will DRM change this? by polyp2000 · · Score: 2, Insightful

    DRM ... Is supposed change this,making piracy so difficult though, but will this have the opposite effect? I doubt it, The fat cats are just going to get fatter and the skinny kittens are just going to get skinnier.

    The article seems to be an anti-piracy article in some sort of disguise.

    In the end the consumer will decide and with the advent the choice will be a lot clearer. Let the Fat-Cats extort your money because you wont be able to use illegal software you obtained for free; or Take up on Open Source and discover that quality software is available free, and best of all its legal.

    --
    Electronic Music Made Using Linux http://soundcloud.com/polyp
    1. Re:How will DRM change this? by leviramsey · · Score: 2, Interesting

      Of course DRM will entrench the fat cats, possibly to a greater degree than they are entrenched now.

      However, ending piracy voluntarily would end the advantage that the fat cats get over the skinny kittens from piracy.

      DRM will not be that draconian. Everybody but the mental midgets at the RIAA realizes that pissing off the customers enough for them to decide to go elsewhere. As long as the DRM allows a certain amount of leeway, consumers will continue to lap it up.

  4. See, as far as I'm concerned by Snowspinner · · Score: 2, Insightful

    The main person piracy helps is me. It's effect on the developers was never really a factor for me - if anything, their insistance on the validity of intellectual property made me actively unsympathetic to their desires in the whole process.

    1. Re:See, as far as I'm concerned by 2nd+Post! · · Score: 3, Insightful

      As long as someone else pays for the development, of course.

      As soon as a company goes out of business (have you been keeping track? Thief, for example? Origin? others?), then you lose too.

    2. Re:See, as far as I'm concerned by TheLink · · Score: 2, Insightful

      I see software patents, 90+ year copyrights and stupid stuff like DMCA as a bigger threat and greater evil to the future.

      When the time comes when you can have artificial auxiliary memories (and interfaces), stuff like copyright laws etc will really get in the way.

      In the RIAA/MPAA dream future you might be paying for each memory you share with your friends (virtual telepathy - wireless + aux mem), or heck you might even have to pay just to recall a movie you watched.

      And you'd have to pay someone each time you mentally turn on your airconditioner or get your autokitchen to cook spaghetti just the way you like it (macro). Someone will patent that equiv of one-click if they can.

      Copying isn't stealing/theft because the original owners still have free access their owned works. They just don't have free access to your money, but I don't think copyright laws should guarantee them other people's money.

      In contrast extending copyright terms is closer to stealing because the public loses free access to stuff that would have ended up in the public domain when the terms expired.

      So who are the real thieves?

      Lobbyists are asking for tight monopolies. Tight monopolies don't scale very well - if 6 billion people have original ideas and all refuse to let others use them it would be hard to move forward.

      It scales worse if there are 60 billion or more people spread across star systems.

      --
  5. The gaming arena hasn't had a big change... by Ceyan · · Score: 2, Interesting

    It was mentioned earlier about applications like Photoshop, or the Windows OS, have drastically increased in price due to piracy. That's probably true. However, how has the gaming arena changed? Not very much.

    As a matter of fact, it's more easy to argue the relatively small price increase of games reflects inflation and the steady increase of standard pay for programmers in the 90's. Quite frankly piracy doesn't do jack to the gaming industry, other than to cause game developers to whine and moan. Had the concept/practice not come about, we'd still be in the same situation. The only possible benefit that would come from the lack of piracy is the possible improvement in game quality since companies spend a lot of time and money on trying to keep their games from being pirated (which always fails, I've yet to see a game that hasn't been cracked except for the online aspect of Neverwinter Nights).

  6. Small developers... bad games. by Leffe · · Score: 2, Interesting

    I think the article is a bit wrong: You do not pirate the big games, you pirate the good games! And most good games are big. Also, most good games are from big companies, that's true most of the time, and even if you are a small company that makes a good game, you will get a crapload of money off the sales and eventually become a big company, just look at Valve.

    Valve doesn't even sell games anymore, they sell CD-keys :D

    1. Re:Small developers... bad games. by DeadScreenSky · · Score: 2, Informative

      Valve isn't a good example - they were founded by a bunch of rich guys, so of course they were able to maintain enough control, etc. to be profitable. Most new developer groups don't have that kind of luxury.

      --
      There is no excellent beauty that hath not some strangeness in the proportion. -- Francis Bacon
  7. Not a good argument.. by CashCarSTAR · · Score: 2, Insightful

    Although this does make a lot of sense when it comes to business software, and it's very true. Copied software creates more educated users of that product, making business take-up that much easier.

    But when it comes to games? Frankly, it's barking up the wrong tree. I don't see how piracy would help the big guy over the small guy. I mean, it's not like there's not millions of keygens floating around for all those small download games..right?

    In any case, I don't think it's piracy that hurts creative industries at all. I really don't. People who tend to do that obsessivly (meaning they don't buy anything..there are quite a few like that), wouldn't have a preference over one thing or the other. You're not going to get them to buy anyway.

    Not so much for the PC market, but especially for the console market, what is really hurting them is the presence of the used/pre-owned game. The same thing that is really hurting the movie industry. This creates a new sub-market for such goods that the producers don't see a penny out of. Every person that buys, for example, Metroid Prime for $20..

    #1. Doesn't have that $20 to spend on another shrinkwrapped budget game..you know, one someone actually gets paid for?

    #2. Considering that the shrinkwrapped price is near 20, it actually denies the producers rewards for their production. This is exactly the argument they make against piracy. But they can't do anything about this because it's above the law.

    So I think complaining about piracy frankly, is half-assed until they start cracking down on used/pre-owned copies. Of course, legally, they're not on firm ground here. However, a widespread advertising campaign and pickiting campaign may convince people that going into that used-media shop is ethically wrong.

    1. Re:Not a good argument.. by Swanktastic · · Score: 2, Insightful

      Not so much for the PC market, but especially for the console market, what is really hurting them is the presence of the used/pre-owned game.

      I don't think you're correct here from an economic standpoint-- which makes the ethical question irrelevant.

      I've studied a lot of pricing theory, and one of the tenets is that resale value is factored into the value the consumer is willing to pay for a new product. Say you intend to buy a car and get $10,000 value out of it over 5 years. Say the car will have a resale value of $10,000 in 5 years. The rational buyer will pay $20,000 for that car. The manufacturer of the car should price the car at $20,000. The fact that market exists really doesn't damage the manafacturer's bottom line-- they're still selling cars at the higher price.

      You may say, "Well that's killing the manufacturer's opportunity for sales at the $10,000 price point." This is not the case. They made that sale already when you paid $20,000 for the car. You can almost think of it as though they sold 2 products then... A new car to you, and a used car to the person you resell to.

      Unless there's something I'm missing, console games sales should work similarly... Add to this the fact that most stores give you store credit for games that you trade in. People have only so much disposable income to dump into video games, and used games doesn't change the amount flowing into industry coffers.

  8. Not So Obvious by MiceHead · · Score: 4, Insightful

    How do you think Microsoft got so big? People used to copy DOS and Windows, and when their companies were getting computers, guess what software their employees were familiar with, and which was thus bought?

    This seems more anecdotal than anything else; CP/M and DR-DOS were pirated, but that didn't do much for them in the long run. You could argue that MS-DOS was pirated more, and therefore became more popular. I think the more "obvious" explanation is that MS-DOS was popular, and therefore more widely pirated.

    As a profitable third-party games developer, I don't think that piracy has hurt us in terms of pricing versus first-party developers; people assign some value to software based on price, and if anything, The big-name, $50-$60 games are pushing our prices higher rather than lower. Most people, upon seeing a $9.95 game, think, "crappy puzzle game."

    Software piracy makes you serve as free advertising for the "victim" company

    Dollar-for-dollar, I'd prefer to have the money, and put it towards development or media.

    1. Re:Not So Obvious by Goldberg's+Pants · · Score: 4, Interesting

      The entire software industry is based on theft, if only of ideas.

      Piracy is a problem for smaller companies and that sucks, but when you get scumbags like Electronic Arts releasing games like the recent MVP Baseball that only works with "approved" gamepads, leading you to spend two hours hacking around in your system registry to bypass it, I don't care if I get modded as a troll, but those fuckers deserve it.

      There is no excuse for pulling this shit, and a lot of people have been screwed over by EA on this, as playing the game with the keyboard is virtually impossible, and after shelling out $50 for a new game, you shouldn't then have to go out and buy a new controller just because EA are money grabbing bastards. (For the record, my "not approved" Gravis Xterminator from about 5 years ago works just fine in the game once I hacked the registry to make the system believe it's a Logitech Dual Action Gamepad.)

      I hate to advocate piracy, but companies that mislead and deceive, like Electronic Arts, really do deserve to be punished. Whether that be through pirating rather than buying, or just flat out not bothering at all, whatever the case, making it so they lose a sale is no more than they deserve.

      Piracy can help smaller companies though. For a great example of how piracy helps the smaller companies, Id Software would never be as prominent as they are now without Doom and Quake being widely pirated. I also remember a few years ago there was a rather persistent rumour that Lucasarts were deliberately leaking their games onto the net to build buzz for them. Seemed to work too.

      I'm glad to support the smaller developers. My pre-order for Out of the Park Baseball 6 is already in:) This is an unpopular opinion, but piracy is not without it's benefits. One pirated game does not equal one lost sale. Piracy has also driven computer sales. The Commodore Amiga, by Commodore's own admission, was as popular as it was due to the rampant software piracy.

      I've pirated stuff in the past, and ultimately wound up buying a game I pirated because I liked it. I would never have bought it had I not pirated it.

      For all these doomsayers about piracy, the fact is, while there are many negatives, the positives are largely ignored.

      I fully expect to -1, troll now, but ah well. Someone has to post the unpopular opinion:)

    2. Re:Not So Obvious by orkysoft · · Score: 3, Interesting

      If they pull stunts like that, it's best to not bother with the game at all, and not pirate it either. Tell all your friends about it, so everyone knows not to bother. Pirating the game doesn't equal punishing the company: they still get the exposure, and other people you invite in, who try the game, might actually buy it. If you don't have it, you can't promote it that way.

      Weren't early iD games released as shareware? That seems like a good distribution method, which combines legality with low distribution costs with try-before-you-buy.

      --

      I suffer from attention surplus disorder.
  9. Re: Picketing campaign? Ethically wrong? by MajikMan · · Score: 3, Insightful

    So I guess it was just as ethically wrong the last time I bought books at the local Salvation Aarmy? That kind of used-goods market just takes money out of the hands of the publishers who made the books to start with? By holding a yard sale, would I be subverting the capitalist system as we know it? ...my god, what about all the pawn shops? Gun and jewelry manufactures could be bringing in thousands of additional dollars if we just forced everyone to buy their products retail.

    The fact is that, while game makers can choose to whine and complain about used game sales, that's where their action will end. They can't do anything about used game sales, and quite frankly, I think it's silly to consider something like second-hand marketing ethically wrong. Whenever a game ends up in the used bin, that mean's that someone else paid retail for the same. At some point, the company got their money for that unit. People spending $20 or less on two-year-old used games are people who most likely would never have paid for the game if it weren't sitting in the cheap bin.

    --

    "Infants flesh will be in season throughout the year." -Swift

  10. Re:The motivation of a software pirate by GlasWolf · · Score: 2, Insightful

    I agree, the author is barking up the wrong tree in terms of the pirates' motivation. Most people will naturally try to justify their decisions with some sort of argument, and in the case of piracy it's do deflect the blame onto something else. In this case, the obvious target is the big, bad publishers who are already raking in more money than they know what to do with (until they go bust, of course).

    I doubt anyone REALLY pirates applications for any other reason than to avoid paying. Anything else is just a self-satisfying cover story.

  11. Wrong: "piracy doesn't do jack" by AHumbleOpinion · · Score: 2, Insightful

    Quite frankly piracy doesn't do jack to the gaming industry, other than to cause game developers to whine and moan. Had the concept/practice not come about, we'd still be in the same situation.

    That is an amazingly ignorant statement. Piracy has had a huge effect on the industry. It raises the barrier to entry quite high. The "big" developers can survive it, but the small companies and the startups who already have enough problems can easily be taken down by piracy. Piracy helps keep the big guys big, and helps force the small to give up their independence and become a "studio" of the big in an attempt to survive. This sort of crap has been going on for decades. And pirates have been making the same lame excuses and denying their negative contribution for decades.

  12. Re:*SIGH* by CycoChuck · · Score: 2, Insightful

    You don't sound like you're trying to take a position for or against piracy. It sounds like to me that you're attacking Linux and claim that Linux users are pirates.

    We also know that warez trading is prevalent among Linux-run IRC servers

    I know several people who warez trade using Kazaa runnining on Windows.

    Quit stealing source code: SCO, Windows 2000.

    Correct me if I'm wrong, but as far as I know there is not one line of SCO or Windows (9x, NT, 2000, or XP) code in Linux.

    Quit trading in illegal MP3s and Divx movies.

    Mp3 and Divx trading happens on almost every OS. I've seen users from Windows, Linux, and MacOS all trade mp3s and movies.

    I do agree with your last statement though. And definitely start paying money for your games! People should get paid for their product. But I can admit that there has been a few times that I downloaded a warez copy of software to try it out or because I was strapped for cash at the time. But I did buy a valid copy if I liked it and saved the money for it.

    --
    Windows is as solid as quicksand.
  13. Re: Picketing campaign? Ethically wrong? by CashCarSTAR · · Score: 2, Interesting

    Sorry, I apologize. Ethically wrong was the wrong term to use. I shouldn't presume to judge, especially since I personally don't think there's a clear answer one way or the other.

    The real term to use is ethically equivilant.

    And yeah. When you buy used books it's akin to piracy, at least from the perspective of the producer. The producer receives no additional benefit for your enjoyment of the work. Maybe it's right, maybe it's wrong, but there's absolutly no difference from the perspective of the producer between downloading a PDF or a book and getting it at the library.

    Absolutly no difference.

    Maybe you somehow feel justified in doing one but not the other, but you have to realize, they are the same.

    Yes. I have rather extreme views of this. It's just that any other way of thought to me is hypocritical. They are either both right or both wrong, at least from the view that the reason you buy something is to reward the producer. (if you're against piracy because you're an elitest prick, then you have some other problems.)

    What can the game companies do? They can refuse to give stock to the EBs of the world that have pre-owned stock next to new. As well, like I said, they could get well known game designer companies to have information pickits to get the word out to buy new or don't buy at all.

    Myself? I think that anti-piracy laws should be strictly focused on commercial avoidance of producer renumeration. In other words, any company or group who makes a profit out of facilitating people avoiding rewarding the producers should be strictly illegal. Non-commercial file-sharing? Harmless in the wide scheme of things.

  14. My "justification" by SmallFurryCreature · · Score: 2, Interesting
    I got tons of legal software. Well not tons. A stack of about 30 centimeters of legit cd's (granted about half of that is phantasmorgia) , an even greater stack of floppies and I am fed up.

    Why did I pay big money for games that often are broken and were never repaired? If they were normal physical products each and every game company would be in court getting its ass chewed out by consumer watchdog agencies.

    And it just doesn't look like it is getting any better. Hell with "copy-protection" schemes it even gotten worse. Buy the legal product and you end up with something you can't copy to preserve the orginal CD, wich is a legal right in holland, and no way to get new cd's (only often send to american residents).

    Where as if you download the game you can archive it as much as you want, you have no bloody keys to keep, and because they rip out the cd checking code the game frequently even runs faster. I lost 1 cd to my legally own "the longest journey", got the box if you don't believe me, I downloaded the game and notice how playing it from virtual cd's is a lot faster. No waiting for the CD to spin up to play a movie.

    So game companies should get their act together. I was a paying customer who bought all his games except doom, no credit card. I now got even more money then when I was a kid and you lost me. Spend some time figuring that out. I tended to buy at least 1 game every single month and frequently more.

    Have I just become a thief or am I rebelling against being ripped off by selling me broken products?

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  15. Re:Meh by meta-monkey · · Score: 5, Interesting

    I think you're missing the point. Right now, the situation is:

    BigAwesomeSuperGame2004 costs $49.95. Joe wants to play a game and knows BASG2k4 is hot right now, but doesn't want to pay $49.95 for it, so he pirates it. Joe completely ignores PrettyCoolAlternativeGame from Small Software Co for $24.95.

    If there were no option to pirate the game, it might work like so:

    Joe doesn't want to pay $49.95, but knows that's the only way to play BASG2k4. Instead, he wanders up and down the software rack and finds PCAG for $24.95 and buys that instead.

    Piracy is hurting the small game developers, not just because their software is getting pirated, but because people won't even consider it if they can pirate the big name games instead. Maybe if the big companies actually felt some pressure from sales lost to smaller companies with less expensive games, they might change their pricing.

    --
    We don't have a state-run media we have a media-run state.
  16. Wrong: "companies spend a lot of time on piracy" by AHumbleOpinion · · Score: 2, Interesting

    The only possible benefit that would come from the lack of piracy is the possible improvement in game quality since companies spend a lot of time and money on trying to keep their games from being pirated (which always fails, I've yet to see a game that hasn't been cracked except for the online aspect of Neverwinter Nights).

    Developers do not spend much time or money on anti-priacy. It is a pretty small amount of time overall and does not really take away from real development efforts.

    Even when developers are not interested in copy protection or other anti-piracy efforts they often are forced into it by publishers or distributors.

    Copy protection and other anti-piracy efforts do work. No one expects them to be 100%. The fact that a handful of more sophisticated users, and that phrase is used lightly, are able to get around anti-piracy is irrelevant. What is relevant is the fact that more casual users are stopped. More often than not someone tries a burned copy of a game, can't get it to work, and then goes out and buys the cd.

  17. Problem with the "I Pirate Quality!" argument by inkless1 · · Score: 2, Insightful

    People have to understand how voting from the wallet works (and you should after reading this article).

    The problem with the "I only pirate good games" argument is that you're missing the core point of the article. If you didn't pirate anything you would have to weigh the merits of software in terms of their real cost.

    Most small dev shops may not be capable of the quality of the big ones, but their stuff usually doesn't cost as much either. So Paint Shop Pro might not be as powerful as PhotoShop, but it also costs 1/10.

    When pirate software, that fact just becomes irrelevant. Worse, you aggravate the situation by widening the gap between the developers - in effect degrading the quality of small software devs by siphening their revenue.

    This is doubly painful for games - where smaller shops might need to try something innovative or different, which is harder to market when people are more like to try and pirate UT2004.

    You can justify it any way you want - but the reality is: piracy sticks it to nobody but the little guy. So when every year games become more and more mainstream, less innovative and EA buys another license - just look to you hard drive and you might know why.

  18. Re:Meh by MMaestro · · Score: 2, Insightful
    That is unless Joe is an average gamer who doesn't know squat about gaming news, doesn't read reviews, and doesn't even bother to ask the sales associate for his opinion on the game (assuming the sales associate plays video games). It'd be like walking into a candy shop and deciding on what to buy.

    Do you reach for the classic tried-and-true Hershey chocolate bar at $1, or do you go for the no-name store made brand which no one seems to buy at $0.25? In cases like these, most people are willing to reach for the tried and true brand names of things rather than try things new in some cases.

    And on top of that, there are advertising factors, appearance of box art, and the popularity of the type of game genre you're talking about. (We all expected Quake 2 to blow away Half-Life since it was id Software. Boy, were we wrong!)

  19. Monopoly-sharing by Deraj+DeZine · · Score: 2, Interesting

    Why isn't this a main page topic? This is most certainly an important topic for anyone involved in the business side of software.

    But the real point of my comment is to introduce a name for this side-effect of piracy, and it is monopoly-sharing. I chose this name since piracy usually occurs on file-sharing networks, but the sharers are actually perpetuating monpolies. The link is to my blog post about the topic.

    --
    True story.
  20. bad formatting, read this instead. by TRACK-YOUR-POSITION · · Score: 2, Interesting
    Jesus, when am I going to learn to preview before submit?

    Inserting the word "magically" into an assertion doesn't automatically make it dumb.

    You're right, it's pretty fucking retarded all by itself with no insertion of words necessary.

    Software sales generally come from people who meet both of the following criteria: "want the software," and "don't already have the software." If you pirated a game, you obviously met the first criterion, but you've removed yourself from the second one. That's one potential sale down the drain. The company has lost value. Not $20, but some percentage of it.

    So if I remove myself from the second criteria, then it's like I never existed at all. See? If some strange holocaust killed all software pirates, it wouldn't change the revenue of software companies at all.

    You need to add one more criteria: "willing to pirate software". There are people who are willing to pirate, there are people who will only use software they have acquired legally. There are probably a whole lot MORE legitimate users than pirates, not because users are particularly scrupulous, but because pirating executable code is more inconvenient and dangerous than pirating music or movies.

    And looking at the sales figures, there are fantastically more legitimate users today than there ever were at any time in the past.

    Not if production costs are increasing faster.

    Right, something other than piracy is the source of independent developer's woe. You could blame the increasing costs of production--though I'm not sure that's really true. It costs a whole lot more to make the state of art 3d shooter than it cost to make a 2d platform game back in the day, but it's way the heck easier/cheaper to make a 2d platform game today then it has ever been in the past. I suspect that as time goes on, making 3d games is going to be easier and cheaper. 3D models will always be more expensive to build than 2D sprites, but the diminishing marginal returns of 3D graphics are starting to kick in, as games displayed on televisions and computer monitors aren't going to be able to look too much better than they do now. Which means that games using cheap, easy to use pre-packaged 3d engines will become visually indistinguishable from games developed with expensive 3d programmers.

    You could blame users for growing sick of the desktop computer as a gaming platform--consoles are a much larger percentage of the marketplace than they used to be, but are vastly less friendly to independent developers. (The web is more friendly to indies, but users aren't as willing to pay.)

    You could blame the thousands and thousands of available classic titles, usually available at low cost somewhere or another. Whether I choose to pirate Warcraft III or keep playing my old copy of Command and Conquer Red Alert, I'm definitely not going to buy your new independent strategy game.

    You could blame the power law. As the number of users and developers increases, it's just plain natural for a small set of powerful developers to make most of the sales.

    Or you could blame users again for wanting big, complicated games, instead of small innovative games.

    You could realize that computer software is what microeconomics textbooks call "a natural monopoly"--the marginal costs of producing new copies is near zero, so the market gravitates toward a few dominant players.

    That's not to say that a pirate shouldn't think twice about stealing an indy game they like if they'd like to see more of that sort of game in the future. But that's no more true today than it was in the past, and piracy is definitely not the reason large game developers are winning.

  21. Re:Wrong: "companies spend a lot of time on piracy by TRACK-YOUR-POSITION · · Score: 2, Interesting
    You are mistaken. The chem software has cracks available for it. A simple google finds many sites offering it.

    Look, I steal a lot of software, so while I may be mistaken in this specific case (although since you haven't named the program, there really isn't a specific case to be mistaken about) I'm not mistaken about the general case. Even if the crack available, it's still vastly easier to exchange software by trading cds around IN A CLASSROOM--i.e. your example still is not generally applicable.

    One pirate kiddie turning another pirate kiddie onto a game doesn't really help anyone.

    Doesn't really hurt anyone either. A non-sale is a non-sale. If we're talking about obscure software, then the probability of a pirate turning a legit customer to the dark side is low, because the number of intersections between your legit and pirate set of people are smaller. This rationalization has been TRUE for decades. That even in the post-linux era people still don't understand this is mind-boggling fucking stupidity. IBM doesn't see all these desktop running linux with no IBM hardware and start bemoaning "geezus, those stupid hackers are STEALING all of our Linux research and development costs!" It sure seems like major corporations aren't buying into your "debunking".

    On the other hand, encouraging legit users to be pirates by forcing them to download cracks to make their product work at all, as has happened to me with several games, definitely decreases the number of legit users in the future, by getting people in the habit of piracy--or driving them away from the PC onto the consoles, where games just freaking work. Surely consoles are vastly more small-developer hostile than PC, piracy or no piracy.

    It seems to me people selling information need to remember that prayer about "the courage to change what I can, the serenity to accept what I cannot." By trying to get every last possible sale from the last few holdouts, sellers of games are alienating those who DO purchase their products. I've got no sympathy for them.