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Mod Chips Up, Game Industry Revenues Down?

securitas writes "In his latest Game On column, the Boston Globe's Hiawatha Bray describes Xbox and PS2 game console hackers as software pirates who use mod chips and damage game industry revenue. The focus of the column seems to be on the use of mod chips as a way to circumvent game copy controls and glosses over legitimate uses, although he mentions some of them. Without offering any research or concrete numbers, Bray facetiously writes, 'But how many mod chip users are interested in making honest backups? You could probably fit them all into the trunk of a Cadillac, with space left over for a spare tire.' Are the majority of mod chip users 'pirates' or are they legitimate users with legitimate applications for the modifications that Bray hasn't considered?"

28 of 611 comments (clear)

  1. Missed Opportunity by Matey-O · · Score: 5, Interesting

    For the longest time I wanted a display device in the livingroom. Something that would play DVD/video/mp3s/internet streaming content. The Xbox seemd like the IDEAL solution based on the horsepower, ethernet and digital multichannel audio out. I'd heard rumors that it was CAPABILE of sending a progressive scan DVD video signal with just a software upgrade and it sounded even better.

    Then a whole lotta nothing happened. I'd have been willing to spend another $50-$75 to microsoft/whoever for the capability. The modchip seems like the quickest way to get an unencumbered display device next to your TV in the family room, but at the expense of a lot of futzing around with the hardware.

    Unfortunately, they missed their target opportunity as 99% of the world out there isn't gonna hack their Xbox to do this, and the only announcement I've seen from Microsoft is a software package that'll ONLY talk to a media center version of Windows XP. (here, you can do this, but first you have to buy this $2000 computer)

    Meanwhile, I realized that internet radio sucks, and my iPod with iTunes fm modulator plus the dish network PVR provides everything I truely needed above and beyond the Xbox's DVD player.

    --
    "Draco dormiens nunquam titillandus."
    1. Re:Missed Opportunity by cgenman · · Score: 2, Interesting

      I'd like to point out here that it isn't the gaming industry saying this. It is the tech reporter for the Boston Globe. Most of the game developers that I know realize that only a very small percentage of consoles that are chipped, and even then those that are probably wouldn't have bought your game anyway. I've seen rough estimates that piracy in computer games hovers around %10, and that sounds about right. When you're trying to pull your title from 30,000 sales to 1,000,000 sales, that %10 just doesn't seem worth devoting too many resources to. And that percentage is a lot smaller on consoles. A lot smaller.

      Sony and Microsoft do go after chippers as a matter of routine, and they always give some plausable reason for it. But they too know that we're in the buildup phase to another generation of consoles, and they too expect sales to have started sloping off by now. Unlike certain other industries, very few of Sony, Microsoft, and Nintendo's press releases are related to the subject of piracy... in fact I can't think of one offhand since they shut down Lik Sang :(.

      This is just an attempt by a newspaper tech reporter to sensationalize a currently very minor problem to the game development industry by tying it to another industry's hype. At the GDC there was only one track related to piracy, and it was entirely sponsored by a copyprotection company. Generally speaking, we have more important things to do.

      And finally, Microsoft really did drop the ball with the XBox. They could promised to deliver the mythical of the set-top box, and they almost succeeded. For the first time, the technology was there, the hardware was there, and the public was ready, but the terrible software just killed it. The fact that you have to chip it to unleash abilities completely unrelated to piracy and regional lockout should be a clue as to where they went wrong.

  2. little kids? by Shakrai · · Score: 5, Interesting
    'But how many mod chip users are interested in making honest backups? You could probably fit them all into the trunk of a Cadillac, with space left over for a spare tire.

    My hunch says anyone who has small kids and doesn't want them to destroy a $40-$80 CD would be a likely candidate for such a mod chip and backup copies. My hunch also says that there are more parents with little kids that have gaming consoles then "will fit in the trunk of a Cadillac".

    I'll stop making backup copies of my software then the gaming industry offers to send me replacement copies of damaged CDs without charging me anything more then shipping and handling. You can't have it both ways -- I'm either paying for the software license (in which case I have the right to make a backup or archival copy and they don't have the right to include technology that stops me from doing this) or I'm paying for the CD itself. And if I'm paying for the CD itself then it ought to cost a few bucks -- not $50. Hell if I pay for the software license who says I have to use the software off the CD? Is it really illegal for me to go and download something off Kazaa that I already own? Ditto for mp3s of songs that I already own the album for.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
    1. Re:little kids? by NightSpots · · Score: 2, Interesting

      You really think there are more parents buying mod chips than teenagers and college students who just don't want to pay for games in the first place?

      Really?

      My guess is that the number of people who have bought mod chips solely to protect their games from little kids is ... well .... less than a dozen. Maybe two dozen, but not more than that.

  3. The usual... by detritus` · · Score: 4, Interesting

    Notice how they dont once mention that game industry revenues are up yet again, but like P2P mod chips are evil in their eyes... Personally i have a modded Xbox, and i just love the ability to have all my games on the HD as i use it in my car and i can throw the box somewhere nice and hidden and just hook it up to a 802.11g gateway when i need to update something. But apparently my doing this costs the game companies whose games i own money, prolly because i dont have to buy new copies to replace those that are all scratched up

  4. I have a mod chip and 0 pirated games by iansmith · · Score: 5, Interesting

    The DVD player in the PS2 is really, really cheap and it does not take much to damage a PS2 DVD to the point where it does not play.

    I have several such disks that I can only play because I have a MOD chip and I have copied the scratched DVD's to new disks that the PS2 can read.

    Plus there are some neat free utilities for working with save games on the memory card, multimedia players and othersoftware that is difficult to run on an un-modded PS2.

  5. It's mine by Doesn't_Comment_Code · · Score: 5, Interesting

    Modifying something you own is NOT illegal. You might be able to do something illegal as a result. Then that action would be illegal, not the modification.

    When I was a kid, nothing was soldered shut. You could open any product you wanted to fix it or see how it worked.

    Recently, I've seen companies try to scare you into not altering what you buy through voiding warranties and placing intimidating stickers on access panels.

    I'm getting sort of sick of it. Once I buy something, it is mine to do with as I please. I can meddle with it, improve it, or smash it with a hammer. It's mine. And I'd appreciate if they could all remember that.

    --

    Slashdot Syndrome: the sudden, extreme urge to correct someone in order to validate one's self.
  6. Does ANYBODY find it suspicious that... by StandardCell · · Score: 4, Interesting

    ...revenues are down because of "pirate" chips, yet there's a marked decline in originality and an increase in sequels?

    This is almost starting to sound like the flailings of the RIAA.

  7. I never by stoolpigeon · · Score: 2, Interesting

    knew much about mod chips or anything and then last week I watched that new Broken video where they showed a little bit about installing them on 3 consoles. I never understood what mod chips did before that.

    They made it perfectly clear in that video that the whole point was you could borrow or rent games and then keep them after you return the physical media. Why else would you pay that kind of money for the chip and then install it- when it looks like you are chancing junking the console?

    Now I still use my Sega Genesis- I don't own one of the newer systems, so maybe I'm wrong. But it seems that the slant of this - "it's not for illegal uses!" argument in the thread is /. bias that is as bad or worse than any assumptions the author of the article made.

    --
    It's hard to believe that's how Micronians are made. Why don't we see it right now by having you both kiss one another?
  8. Re:Methinks the modder doth protest overmuch by IWorkForMorons · · Score: 3, Interesting
    I think the vast majority of people who own 'modded' consoles have had them modded so they can hire a game from Blockbuster and pirate it.

    I'll agree, but even for those who pirate there are various reasons why. I'm not saying they are good reasons, but still. A friend of mine has a son. She doesn't have a lot of money, but she gives her kids everything she can. That included the PSX and a bunch of games and such for Christmas. The only problem was that after Christmas, there's not much money left for games. So the following Christmas, I decided to do them both a favour. About 2 weeks before Christmas, I took his PSX and installed a mod chip. For Christmas, I gave him three copied games, and told him that I could get him more. This kid was so excited he was in tears. It meant that he got to play all the games he wanted. And it meant even more to his mother, who was thankful she didn't have to worry about spending $60 on one game. Instead she could use the money to buy food and clothes for the kids. And it made me feel good, because I helped out a family that didn't get a lot of nice things.

    Now I will say that yes, I do know that it's illegal. I don't kid myself by thinking "well, it's for a good cause, so it's OK". And that it probably wasn't the best morality lesson to teach the kid. But you know what...sometimes the moral thing to do isn't the best thing to do. So what....one kid who wasn't born to rich parents gets to enjoy his childhood a little more. I don't feel guilty about giving him that pleasure. Maybe that say more about society then piracy...

  9. Re:Mod Chips Up? by Jerf · · Score: 4, Interesting

    Chips is user 4885, and hasn't posted since May, 2002. You can't mod Chips up, all his posts are locked in the archives.

  10. Offer free replacements for scratched CDs by jeoin · · Score: 1, Interesting

    perhaps this would alleviat the burden of copyright. Just a straigt across exchange at cost after the intial profit has been made.

    --
    Jeoin
  11. Punish the crime, not the tool... by Thud457 · · Score: 2, Interesting
    "Bongs enable people to smoke marijuanna."

    Yeah, whatever...

    In some places (the UK, I believe, fer instance), you can be charged with "possession of burglary tools" for being in the wrong place with a screwdriver in you pocket. That's pretty WHACK.

    Where there's a will, there's a way. The best that stupid laws like that do is intimidate the stupid. That's a lofty goal for our legislatures. Oh, wait, now I'm conflicted...

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

  12. Re:What about drug paraphenalia? by y0gi · · Score: 2, Interesting

    Both bongs and crack pipes are actually legal (in the US) and are sold in many retail stores. Untill they are used for an illegal purpose such as smoking weed or crack which leaves a film of tar on the piece and can be tested to see if it was used for a illegal purpose. The obvious problem being how dose one test to see if a mod chip has been used for an illegal purpose, however that does not mean it should be illegal

  13. Original PlayStation by DarkMagician07 · · Score: 2, Interesting

    You know, I came into the mod-scene with the original PlayStation. There were a ton of games that a friend of mine brought over from Europe and Japan that we wanted to play while he was here. Unfortunately, the European PS doesn't play on an NTSC TV.

    Because of this, we modded my PS to play his games (all purchased copies, no 'backups'), and I learned of quite a few games that I would have missed out on, had it not been for that modchip.

    I had him send me more games when he got back, as he travelled to Japan regularly and could get games for a decent price at the time. Too bad I couldn't read Japanese, though, as some of those games looked like they had interesting dialogue :)

  14. Who needs mod chips? by dlc1911 · · Score: 2, Interesting

    The Xbox makes a very useful media player for the living room. http://www.xboxmediacenter.com The only reason I bought an Xbox was for this purpose... Now I have 3 and none of them have mods chips since you can flash the onboard bios (Mechwarrior exploit). I own the hardware so I do as I will with it. Obviously I would not ask Mikeysoft to fix it if it broke at this point since it is not in the original purchased condition. With the notorious failures of the Thompson DVDROM in the Xbox I certainly backup my games to my upgraded Xbox hard drive. I would like to say thanks to M$ for making it so easy to modify. Nothing like a $130 (refurbed) networked DVD/mpg/m2v/mp3 player for the living room.

  15. Modder != Pirate by Anonymous Coward · · Score: 1, Interesting

    I modded my original PS. I tested to make sure it could run CD-Rs. I was satisfied, and never used it since. It's weird, but the geek in me had just gone into overdrive when I found the chip, and I had to have it. Mind you, I'm not a gamer, and I hardly play the games I legitimately purchased in the first place. Let me re-phrase, I don't own a single pirated game, and even if I did, I would probably never play it.

    For some reason I don't think I'm the mainstream modder, but I do get a hunch that there are a lot of geeks out there that have modded their game consoles simply because they can. Hey, it's fun. It's honest, and I don't think modding equipment that you own should be anyone's problem.

  16. Write to FOX!!! by Anonymous Coward · · Score: 1, Interesting
    Free Tommy Chong!!!!

    "That 70's Show" just hasn't been the same!

  17. Re:What about drug paraphenalia? by IWorkForMorons · · Score: 2, Interesting
    Bongs enable people to smoke marijuanna.

    Man...you must be smoking pretty strong stuff to believe that. First off...BONG HITS ARE NOT ILLEGAL! What could be illegal is what's in the bowl. But the actual device itself isn't. At least in some part of the US and most of Canada. There were some strange incidents, like the owner of Chills Cigarette Papers being arrested for "manufacturing drug paraphernalia." And then there was the arrest of Tommy Chong. Christ...who couldn't see THAT one coming. But still, is it necessary? No...pipes and papers could be used for many other things...

    The other thing is, and I know this from great experience, you don't need a bong to smoke. Or at least a store-bought bong. Bongs can be made out of a great number of things, all of which look inconspicuous. Besides that, you can use papers to roll a joint; use a regular tobacco pipe; set it on fire and put a bottle with the bottom cut off over it; create a lung with a pop bottle, some tape, an empty bread bag, and a piece of tin foil; you could make a gravity bong with a pop bottle, a bucket, and a piece of tin foil...I could go on, but you get the point. There are a great number of ways to smoke pot. And many don't even require walking into a store...

  18. Superior Solution by Smilodon · · Score: 2, Interesting

    I am using my XBox (with 200gig drive) for XBox Media Center. I hardly play the few games I got with the device.

    Frankly Xbox Media Player is a superior solution for playing various digital media than other set-top box solutions. It is only matched by a "full-blown" PC, which I don't want in my living room.

    The software will play nearly anything, which makes some of the other "set-box" solutions seem pathetic due to the limitations of what format video they require.

    Yes, I know the XBox is essentially a PC, but it has HD output, a wireless remote, a (region free with the software)DVD Player and so forth.

    Sure, I could build a shuttle or some other small form factor PC to do the same tricks, but I've got less than $400 bucks in this solution all out.

    I know they expected to make money off of me on all the games I would buy, so that's why I got it so cheap. That's not a great deal for them, but regardless, I'm not pirating games!

  19. Rights. by eSavior · · Score: 2, Interesting

    Consumers are quickly losing what rights they have on products they buy. Some people on here have said to lobby congress against the DMCA. I am curious to if anyone has actually seen benifit from that? Lobbying congress as a individual may have worked in the 1900s but today if you dont got the money our representatives dont care. You may say that intrest groups are a collective of individuals trying to get to a common goal, but take a look at the amount of campaign donations high end intrests groups make (NRA). Laws now go to the highest bidder. Welcome to a capitalist democracy.

    Also, some have said we should be able to do what we want with things we buy, in responce people have brought up bongs and guns. These things are very emotionally charged, and are not very good examples.

    A better one would be, 3rd party hardware. Ever buy a non sony memmory card? They are generally cheaper or have more storage capacity. Well what if sony put a lock on its machine that would allow only sony santioned electronics to be pluged in. You then would be forced to pay whatever the price they picked for their cards. Competition would be non existant.

    The problem with this is, what if that locking out of competition was also used as a way of stoping pirated games. And that is the situation the legitmate modders find themselves in. They wish to back up their games, or make homebrew code, but they dont want to circumvent copy protection, unfortunatly how its designed one can not come with out the other.

  20. Re:What about drug paraphenalia? by dnoyeb · · Score: 2, Interesting

    My sister received a bong at the hospital last weekend. An asthma bong. Its a normal inhaler, but with a BONG attached to it because it, "delivers more medecine."

  21. Re:Real reasons for mod chips by greenskyx · · Score: 2, Interesting

    "why is it never mentioned that there has been a significant increase in video game RENTALS" I think they ignore the fact that some games are over priced. I find it crazy to spend $50 on console games... Some games like Baldur's Gate Dark Alliance (I & II) are fun, but can be beat in one or two rental periods ($12 where I'm at for 10 days). That's WAY less than $50. Other games I just wait a few months till they are ~$20-$30 and get them used.

  22. Of course they're used mostly for piracy by realmolo · · Score: 2, Interesting

    Yeah, you can backup your games. But unless you are perishingly honest, you won't. You'll rent games, make copies.

    On the X-Box, it's even easier, if you've added a bigger hard drive along with the modchip. You just rip the game to the hard drive.

    Now, as to the question of how this hurts game sales- let me put it this way:

    The only people I know that have modded consoles are myself, and 2 friends who learned how to do it from me.

    NO ONE owns modded consoles. At least, it's a statistically insignificant number. It doesn't hurt sales. What hurts sales is the fact that you'd have to be crazy to pay $50 for a game when you can rent it for $6 and finish it in a few days.

  23. Re:What about drug paraphenalia? by Ellis+D.+Tripp · · Score: 3, Interesting

    Lack of enforcement probably has to do with lack of law enforcement resources, along with the vague "tobacco use" disclaimer in the federal statute. Head shop owners ALWAYS have a "for tobacco or legal herb use only" sign conspicuously posted, and generally will eject people who ask for the prohibited "bongs" rather than the permissible "water pipes". A strict reading of the federal law renders these things illegal, regardless of the disclaimer, but apparently the feds are content (for the time being) with busting ONLINE pipe sellers rather than their "brick and mortar" counterparts. Maybe when they get done arresting cancer patients and the like, they can start going after the menace of the "bong merchants"? Maybe the fact that the stores pay local taxes, etc. keep them safe from local cops?

    --
    Remember "News for Nerds, Stuff that Matters"? Help make it a reality again! http://soylentnews.org
  24. Uh, does this mean .... by RLW · · Score: 2, Interesting

    ... for what ever reason if wanted to put windows on the XBox i could do this with a mod chip and a windows CD ? Would a USB keyboard and mouse work and the dislpay is just the tv out ?

  25. Re:Overlooking another legit use for mod chips by Altima(BoB) · · Score: 2, Interesting

    Yeah, exactly. I often wonder if at any point in the existance of society these big corporations will ever see these actions and rather than seeing it as a simple crime, see it as a message from the consumers that they don't like things and won't tolerate it. If companies interpreted it like this and changed their practices to suit consumers, perhaps they'll increase profits, making a win/win scenario.

    I'm sure this is not a new idea, and if I'm oversimplifying, please correct me, but it seems to me that the balance between "The customer is always right" and "Caveat Emptor" has really shifted these days to consumers being treated as enemies...

    --
    Yup...
  26. Re:Methinks the modder doth protest overmuch by enkidu87 · · Score: 3, Interesting

    Selling import DVDs is a violation of the exclusive right to distribute the DVD in the US by the holder of that right. That right was paid for by the distributor to the copyright holder.

    These are what are known as "grey market" items. While not "illegal" in the sence that criminal charges can be brought against you, the holder of the exclusive reproduction/distribution rights for the US can bring a civil suit.

    Now, they generally don't go after the small fish who are selling a few in a store, the do go after those who bring in truck loads.

    It is too costly to sue everyone who sells a grey market DVD or VCD. Living in the Bay Area, I see tons of grey market stuff as well as illicit copies of copyrighted material (from VCDs to fake Louis Voutton (sp?) bags). While some is "illegal", i.e., the government can charge you with criminal conduct, much is not. Like import video games and DVDs.

    It is o.k. for YOU to order these things from over seas distributors, because you are technically buying it in another country from someone who is authorized to sell it to you for PERSONAL use.