Independent Dev Reports Over 80% Piracy Rate On DRM-Free Game
An anonymous reader writes "Developer 2D Boy has written that they are seeing an 82% piracy rate for everyone's favorite DRM-free physics puzzler, World of Goo . Surprisingly, this rate is in-line with what they were expecting. The article also features a fascinating comparison with the piracy rate of another game that was shipped complete with DRM, at 92%. There seemed to be no major difference in the outcomes of the rate regardless of whether DRM was used or not ... well, no difference other than the cost to implement such nonsense."
Which is all just proof that the DRM that the other game shipped with clearly isn't strong enough.
Or at least, this is how I'm predicting most industry execs would interpret this. There's always wriggle room for those who'd rather not face reality (particularly those who have their livelihood staked on it, such as StarForce).
there are more variables than "has DRM" and "does not have DRM" that could influence the steal rate. selling price, metacritic rating, marketing to name a few.
DRM is about preventing sharing. I don't mean BitTorrent sharing. If you purchased a copy of a game from Walmart and want to lend it to a friend after you are done, DRM is designed to prevent that. Most (if not all) DRM solutions are bypassed before the game hits the torrents, making DRM worthless at preventing piracy. But a limited number of installs prevents honest customers from lending each other games. It also makes re-selling the game difficult if not impossible.
The game companies would certainly do this for consoles if they could (I believe Sony has a patent associated with it). It's one of the reasons why downloadable games are very popular. I've purchased the first two episodes of Penny Arcade Adventures for the Xbox 360. I have a friend who would like to give them a try. The DRM doesn't prevent an illegal download of the PC version of the game, it doesn't prevent me from lending a legal copy of the game to my friend.
Which explains why they're trying new ways of making people pay, as we saw recently...
To do list for Windows
The problem with using a per-game statistic for measuring piracy is that a pirate can play far more games than someone who doesn't pirate, but will play each of them less. If you have 25 pirates and 75 people who pay, and each paying person buys five games but each pirate downloads fifty, then each game will be pirated more than 75% of the time. (All of these numbers are pulled out of the air; I don't know the size of the effect, but economics dictates that the number of distinct games per person is at least somewhat higher for pirates.)
TFA: we divided the total number of sales we had from all sources by the total number of unique IPs in our database, and came up with about 0.1. thatâ(TM)s how we came up with 90%.
Heaven forbid a legit user installs it on his laptop, takes it to the library, starbucks, work, university, a few friend's houses and whatever other wifi signals he comes across.
This math seems pretty flawed.
I downloaded it (the full version) to try it out. It's neat, but it's not my cup of tea so I deleted it. In my case there's no lost sale, as I was using the game as a demo. I'm sure a fairly large chunk of that "82%" probably downloaded the game so they wouldn't have to pay for it, but I think it's important to note that there are people who will just download something because it becomes available. They don't necessarily want it specifically, and will probably never touch it, but they download it anyway. It's my opinion based on my own experience (I have done zero formal research) that these people comprise the bulk of the "pirates". They didn't buy the game because they were never going to buy the game. Their downloads will get stashed on a DVD or a hard drive somewhere and then go ignored until the heat death of the universe.
Back when I was younger I was really into the "collecting" aspect of downloading software. I didn't know when or where I might need something (or indeed IF) but if I could get something my friends didn't have it felt like a victory of sorts, as did sharing what I had. I tell you, if I'd put half as much effort into my studies as I did into downloading I'd have a PhD by now. Now I waste all my time downloading music I never listen to. :D Some things never change.
Unfortunately, customers don't seem to care about DRM per se, just DRM that fucks with their systems. In DRM terms, contemporary consoles are to PCs what cybernetically enhanced Yakuza ninja assassins armed with mind control shiruken are to mall security guards.
The latter are far more annoying; but the former are far, far more effective. It would not at all surprise me, given their experience with both WMRM and consoles, along with the overwhelming degree of dissatisfaction with current PC DRM, most of which does some seriously dubious stuff to your OS, if Microsoft simply decides to fold a DRM API of some sort into future versions of Windows. By virtue of controlling the OS, they would be able to offer equivalent or better DRM than would the third party stuff, with lower likelyhood of breaking things horribly.
Now, having the guys you buy your OS from in on the conspiracy to control your use of it is not exactly an improvement from the freedom perspective(and you might want to look into bidding fairwell to first sale); but it would quiet the people who oppose DRM merely on convenience grounds.
Isn't the point that the DRM-free piracy rate was NOT high, compared to the DRM rate? WTF?
I don't see how such statistics are even useful, anyway. Piracy is an unfortunate market force, an inevitable cost of doing business. We all know that. Clearly, it hasn't stopped games from being profitable.
I think that even the most thickheaded publishers are starting to figure out that trying to stop piracy is futile, at least for single-player games. It would seem to me that most developers releasing their stuff DRM-free have simply stopped worrying about what's being "taken" from them, and refocused on maximizing their income. In the ever-expanding world of online gaming, where authoritative control is actually possible, the DRM makes sense and will continue to be used. It's all about the benefit against the cost.
In other words... DUH.
One of these days, I'm going to cut you into little pieces.
This study is deeply flawed. Optional checkboxes? A reliance on IP addresses (dynamic, logging in from multiple locations, etc.)? I eagerly await the technical analyses of the study's flaws.
This story is making the rounds surprisingly fast, which is fucking terrible. The study is flawed, but how many readers will see that? Will they take this 80% piracy rate at face value? I really hope not.
To those who think piracy will ruin PC gaming by making profitability impossible, I offer the following analysis of the sales of another DRM-free game: Sins of a Solar Empire.
In September, Stardock reported that Sins sold over 500,000 units: 400,000 at retail and 100,000 online. For the sake of these back-of-the-envelope calculations, I'll assume that the average retail price is $40. The online price is $40. I'll round down total sales to 500,000.
So 500,000 * $40 = $20 million. We know that Stardock took in at least $4 million by virtue of online sales. I don't know enough about retail sales to estimate how much retailers take in per sale.
Sins cost less than $1 million to make. After the retailers get their cut, and Stardock pays for Impulse's bandwidth, I'll estimate that they pocketed at least $10 million, probably more. (I'm being conservative.)
That's at least a 10:1 return on their investment. That sounds like a killing! And Stardock/Ironclad plans several micro expansions in the coming months.
Even with piracy, Stardock did quite well. Hell, even if piracy is 90% (which I think is a buncha crap), they still made plenty of dough. Why? As explained by Brad and others:
1) Ironclad/Stardock kept costs low. I hate how the industry creates these multimillion dollar games that necessitate a huge number of sales to recoup development costs. Piracy or not, the PC gaming market is simply too small to fully recoup the dev costs of today's AAA games (not enough high-end PCs etc. etc.). That's why big-budget games need multiplatform sales.
2) Relatively low system reqs.
3) Sins is a PC game. At the moment, you simply can't have a Sins-like experience on a console. Stardock's offering a game that takes advantage of the PC's strengths. Imagine that, appealing to your target audience. AFAIK, the game doesn't suffer from "consolitis."
4) Excellent customer support and relations. Patches, active forums, listening to customers. The other day, Brad left a post on a somewhat obscure topic at CivFanatics. He wanted to to clear up any misconceptions about Stardock's upcoming fantasy 4X game to an audience that's clearly interested in 4X stuff.
5) Lots of positive press. Slashdot and other PC/geek sites responded positively to the company's anti-DRM messages, the PC gamer bill of rights, etc. This probably attracted customers and overall goodwill.
Now if Sins isn't your kind of game, you probably don't care either way. What I'm arguing is that it's possible to profit handsomely in the non-MMO PC game market, provided you know your audience and release a game worth playing. Having good marketing and PR certainly helps, too.
Source: http://news.bigdownload.com/2008/09/04/over-500-000-total-sins-of-a-solar-empire-units-sold/
or
E) Game producers turn pirates into paying customers and embrace distribution methods people prefer without harassing them. Reality is that most people pirate stuff they wouldn't buy in the first place. No loss there except free marketing. The only problem is people pirating stuff they would normally buy. But with a good product, good support and harassment-free incentives to buy the product, you should be able to turn those people into paying for products.
PS:
D) Games move to Steam. Everyone wins...except for those boycotting on principles.
Personally, I don't like Steam for the simple reason it annoys the hell out of me. I can't start games without Steam throwing ads at me for products I don't care about and it increase the loading time of games significantly. Impulse from Stardock is much better in that respect (disclaimer: I purchase most of my games through Impulse. I used to buy games from EA, or well, the studios it has taken over, but I can't remember the last time I did).
It only takes one man to change the Wisdom of the Crowd to Tyranny of the Masses.
That's what I do too.
Unfortunately, my brother thinks, that as long as you can copy it, then why would you buy it at all?
It goes without saying, that his views to not fit with mine. Somehow he does not "get" the morality that is involved in being motivated to not hurt the developer if he's nice to you too.
And strangely, he's a media industry manager, who does not get why DRM is so evil, too.
Somehow, my theory is, that both sides, the one hurting the developer, and the one hurting the consumer, are two sides of the same character.
The type that does not trust people and thinks there is nothing else out there than a dog-eat-dog world, so if others fuck you anyway, and everybody can expect it, then he can act that way too.
The best thing is, that I even know the reason for this. His life was unfair and sometimes even horrible. And so was mine. I still do not trust many people.
But I could never stand someone good being hurt, because I saw it happening to my own brother.
So if you want to stop the **AA and those type of guys, just make the world a bit better, be nice to others and your kids, and hope that they end up defaulting to being good. (Oh, and wait one or two generations. ;)
(I know it's not realistic in the short run, but does it result in anything not good, to try it anyway?)
Any sufficiently advanced intelligence is indistinguishable from stupidity.
Of course, if we were to look at the flip-side, 18% of the people who got their hands on World of Goo purchased it, whereas only 8% of those who got their hands on the other game purchased it. That's over DOUBLE the rate of purchase.
It's all a matter of perspective.
And piracy is the reason. DRM cannot fix it and just pisses off the people actually giving you money.
The PC has always been a place for experimental games and has far more gaming firsts than any console platform could. It's a breeding ground for innovation and experimentation. But the same low barrier for entry that makes the PC good for this makes breaking copy protection trivial.
Consoles on the other hand require a substantial initial investment and lean very strongly towards games which WILL be a commercial success. Piracy on consoles is much less of an issue because a console is much more of a "black box" than any PC ever will be. It has the ultimate copy protection, piracy is less convenient than buying the game. For this reason, the blockbuster games will almost always be directed towards the consoles.
But all is not lost for the PC. Consoles are becoming closer to the PC. The xbox 360 is essentially a PC and microsoft has made sure that games developed for one can be ported to the other with a minimum of effort. This ensures that while PC users are 2nd class among the blockbuster games market, the market still exists and can be met with little extra cost.
There is however one form of copy protection that works. Games focused on online play are trivial to protect and with monthly fees it's often undesirable to even try. Valve has nailed this one on the head with steam. Make games easy to buy, easy to hold onto forever, and have a rudimentary drm system, while authenticating this in online play. The calling home DRM is somewhat invasive, but it's more than made up for by providing a useful service, that of having a permanent account that I KNOW whatever happens I'll have access to my games in the future. No CDs or keys to lose.
Steam is probably the best method of PC game sales/distribution that exists. It's not perfect but it's far better than any DRM, and provides independent developers publicity and an easy way to sell.
Somehow, my theory is, that both sides, the one hurting the developer, and the one hurting the consumer, are two sides of the same character.
My thoughts exactly. Big publishers need to see DRM on software because they are they type of people that would not think twice about pirating software. The honor system (that is, honor) just does not compute.
(Not talking about your brother, in case there was even the tiniest ambiguity there. I don't know the guy. Or at least I don't know that I know him...)
I think they made a terrible miscalculation on the expected price on their part. I would never pay $20 for a game I'll spend a few hours on when most games I'd spend weeks on costs ~$30-40. Had the price been half, they would most certainly have doubled if not quadrupled their sales if not more. The market for a simple game at higher prices is not that big. It's an easy argument if you have a reasonable price for the consumer and not what you would like someone to pay.
On a project I worked on it was less than 0.1% - we even had large well funded companies say 'why should we pay?'.
Relying on human nature is doomed to failure.. you need stick as well as carrot.
Which would be far more interesting a statistic if they were using anything like a valid method for measuring the piracy... They're counting up the number of unique IPs logging into their site playing the game, and dividing by the number of copies they sold. Many people get assigned a random IP by their ISP on a regular basis; each of those people will count as many, many pirates by this method.