Slashdot Mirror
iPhone Game Piracy "the Rule Rather Than the Exception"
An anonymous reader writes "Many game developers don't think of the iPhone as being a system which has extensive game piracy. But recent comments by developers and analysts have shown otherwise, and Gamasutra speaks to multiple parties to evaluate the size of the problem and whether there's anything that can be done about it. Quoting: 'Greg Yardley confirms that getting ripped off by pirates is the rule rather than the exception. Yardley is co-founder and CEO of Manhattan-based Pinch Media, a company that provides analytic software for iPhone games. ... "What we've determined is that over 60% of iPhone applications have definitively been pirated based on our checks," he reveals, "and the number is probably higher than that." While it's impossible to estimate how much money developers are losing, it involves more than the price of the game, he says. "What developers lose is not necessarily the sale," he explains, "because I don't believe pirates would have bought the game if they hadn't stolen it. But when there is a back-end infrastructure associated with a game, that is an ongoing incremental cost that becomes a straight loss for the developer."'"
It's nice to see a big name admit that 1 pirated copy != 1 lost sale.
Our headlines today:
* DRM doesn't work
* People are assholes
* iPhone the same as any other platform shocker
If all else fails, immortality can always be assured by spectacular error.
My company also tracks iphone piracy rates. And while the piracy rate is in line with the OP there's more to it than that. Apps with demos generally have lower piracy rates. Also we track usage rate, pirates tend to only launch once or twice, as if they're sampling the app. So it's not as bad as the article makes it sound.
the developer is grossly over-estimating the value of their software, thinking "If my software isn't great, then why would anyone pirate it?"
I once worked for a small company with a semi-popular application. Sales were almost all of the form of pay pal purchases off the website. It wasn't a lot of money, but it was enough to pay one developer. But piracy was a huge problem. It was quite obvious that more than 90% of the copies running were pirated.
The company changed directions and started bundling the application for free with online services. The service provider would pay for the application and the customers would get the software for use only with the service. But the company was worried about piracy, so they asked me to write DRM that tied the application to the service. They would continue to sell an untied version off the website, but with "call home" DRM (it's an internet app, so it's not quite as draconian as it sounds). I very reluctantly agreed (i.e., I had to decide whether it was worth quitting over -- if I had to do it again, I'd quit).
The end result was that all piracy stopped. In fact, all usage stopped. Instead of selling 2 or 3 copies a day off the website, not one copy of the DRM version was ever sold. And due to very poor choices of service provider partners, the company received no revenue at all. Within a year the company had folded.
The thing is, the new version was head and shoulders better than then non-DRMed version. And the DRM was truly unobtrusive (think DRM in WoW). Paying customers wouldn't even know it existed. But sales are generated by popularity, not quality. Piracy, like it or not generates popularity. The company was very small and had no means of effective advertising. By cutting off the pirates, they shut off their only revenue source.
What always kills me about this story is this: The app we were making was *perfect* for an open software model. Ask the service providers to each spend a small amount of money to cover development and give them the app for free. Give them branding in the app to thank them for their help. But the "sales" people were always quick to point out that the service providers they found had no money and couldn't afford to pay us up front. How on earth did we fail? :-P