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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."'"

25 of 268 comments (clear)

  1. Finally by delta419 · · Score: 5, Interesting

    It's nice to see a big name admit that 1 pirated copy != 1 lost sale.

    1. Re:Finally by Anonymous Coward · · Score: 3, Insightful

      It's nice to see a big name admit that 1 pirated copy != 1 lost sale.

      Now let's see if we can get someone on the other side to admit that software houses lose a lot of revenue from piracy, even if 1 pirate copy != 1 lost sale.

  2. News at 11 by CharlyFoxtrot · · Score: 4, Interesting

    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.
    1. Re:News at 11 by nbates · · Score: 4, Interesting

      Not all piracy is because people are assholes. See, iTunes is not available in my country (Argentina) without an international credit card. They won't even take my paypal account unless it has a valid US address. Most of the time they won't even allow me to subscribe to free podcasts (!!!).

      So I went to a Mac Store and asked them if they sold Gift cards, nope...

      Then I contacted the company who makes the app I wanted (I was willing to pay the $2 they asked, using paypal) but nope... They only do business through Apple.

      Ok, screw them. I just downloaded the app, uploaded it to my iPhone and run it.

      Something similar happens with the Wiistore. And don't get me started about PC games, that cost several times their US cost.

      No wonder piracy is so widespread.

  3. Yes but there's more to it than that. by Anonymous Coward · · Score: 5, Interesting

    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.

    1. Re:Yes but there's more to it than that. by Ethanol-fueled · · Score: 4, Informative

      TFAs were scant on details. How is it that they can identify which instances of apps were pirated and yet still be unable to put in a decent kill switch* ? Are iPhone games that easy to crack? Do iPhone games use a ubiquitous piracy control scheme where you crack one, you crack all? Are there that many bored or unemployed crackers who would go through the trouble to crack a $2 game?

      *Not that I condone that sort of thing, but people are used to that kind of control on mobile platforms anyway.

  4. Compensated source = cooked numbers ?? by Archfeld · · Score: 3, Informative

    "Yardley is co-founder and CEO of Manhattan-based Pinch Media, a company that provides analytic software for iPhone games...."

    I'm sure reporting greater pirating numbers is in Mr. Yardley's financial interest as well. Not to say there isn't pirating going on but when the entity reporting the pirating number derives a living from said numbers I tend to be a bit skeptical. It is like the RIAA's number's, there has to be some basis for truth in them, but you can rest assured they are massaged and slanted to show the greatest impact to the paying customer...

     

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
  5. Re:clue for the non-iphone-user by Amorya · · Score: 5, Insightful

    Overpriced to begin with? Rubbish. They cost loads less than on any competing platform. It's almost laughable how consumers will argue about how a $2 app is only worth $1 or even should be free.

  6. Losing to Piracy, or, Over-Estimating App Value? by Bones3D_mac · · Score: 3, Insightful

    Whenever a developer claims to be "losing money" to piracy, one has to wonder... are the developers losing this money trying to combat piracy directly (lawsuits and DRM tactics), or is it simply a case of self-flattery, where the developer is grossly over-estimating the value of their software, thinking "If my software isn't great, then why would anyone pirate it?"

    Perhaps its time for some self-reflection. You are just another pawn in an industry wide problem spanning over 30 years. Chances are, you and your app aren't special. The piracy was likely nothing more than a bulk job handled indescriminately with no concern for you or anyone else.

    --


    8==8 Bones 8==8
  7. Re:definitively (sic) been pirated by Serious+Callers+Only · · Score: 4, Informative

    Can't we get someone who's [sic motherfucker] first language is English to proof-read these things?

    It's whose, motherfucker, not who's.

    --
    Brought to you by the department of abusive language correction.

  8. Re:clue for the non-iphone-user by maxume · · Score: 5, Insightful

    Actually reading the article, I was right, quoting from approximately the fifth paragraph:

    Just over 60% of paid apps using Pinch have been pirated. This estimate is also low, since application pirates occasionally disable our tracking. When an application is pirated, an average of 34% of all installs are cracked -- in other words, about half of legitimate paid downloads.

    He says that for apps that have seen piracy, an average of 34% of the installs are pirated.

    So the 60% was just their way of stating the biggest possible percentage.

    --
    Nerd rage is the funniest rage.
  9. Hey, Submitter! by cliffiecee · · Score: 4, Insightful

    Don't change the meaning of the article when summarizing.

    over 60% of iPhone applications have definitively been pirated
    as submitted

    60% of paid apps using Pinch have been pirated.
    (as written in the article, bolding included)

    Let's "reverse-bold" that...
    60% of paid apps using Pinch have been pirated.
    (emphasis mine)

    It might be relevant to non-pinch-using apps, it might not. But let's not delete that relevant bit of data.

    1. Re:Hey, Submitter! by DNS-and-BIND · · Score: 3, Funny

      The point is to get people angry and accomplish positive change. I have a problem with you criticizing a very valid tactic used daily by working journalists. Who the hell are you to judge? You can't do that by dryly reporting a mind-numbingly boring story in didactic terms. You do that by "taking an angle" on the story, and making it relevant to people's lives.

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
  10. Re:clue for the non-iphone-user by Interoperable · · Score: 4, Informative

    No kidding. If an app "should be free" because it clearly took so little effort to develop, then I encourage would-be-pirates people to simply write it themselves. If they don't have the ability to write it but want to use it, then it is worth something to them.

    --
    So if this is the future...where's my jet pack?
  11. Re:clue for the non-iphone-user by CannonballHead · · Score: 4, Insightful

    The same could be said about music, but that doesn't go over so well :)

  12. Shhhh, by Icegryphon · · Score: 4, Informative

    he explains, "because I don't believe pirates would have bought the game if they hadn't stolen it...."

    Don't tell the MPAA or RIAA that.
    They will get all uppity in your shit!

  13. Does require a jailbroken phone, and there's more by SuperKendall · · Score: 4, Insightful

    Does pirating an iphone app require a jailbroken phone?

    Yes, that is the case. So that means 2-3 million devices that can potentially pirate apps (of course not all people that jailbreak do so to pirate apps), out of a field of 30 million+ devices.

    If so, does that mean the "rule" is that there are more jailbroken phone users out there using these pirated applications than there are non-jailbroken phone users using them?

    Not at all. This statistic is really misleading, because they are just saying that 60% total of the apps HAVE PIRATED VERSIONS. Actually I would be really surprised if it was that low, I thought it was closer to 90% since it's easily automated - but someone has to buy the app in the first place to pirate it....

    But that number says nothing at all about the number of users of any application. That number is NOT saying that 60% of the users of any given app have pirated it.

    However there's even more to it that that. As I said the pirating is really easily automated, so it's not like the traditional pirating where applications are really cracked - code signing is just removed. This is actually really easy for an application developer to check for and so lots of apps now check to see (a) if they are on a jailbroken device or (b) if the app is pirated or not. Lots of developers monitor that but do nothing about it, some issue gentle notices after a few weeks saying "hey, why not buy me now". So any developer that cares about the pirating can make the job a lot harder if they really want by preventing functionality on pirated copies.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  14. War of the memes by SuperKendall · · Score: 5, Insightful

    What's up the past few days. Stories about iPhone development sucks, Android development rules, no wait Android development sucks and iPhone development rules, no wait iPhone owners are a bunch of pirates.

    What you are seeing is a battle over memespace, two sides trying to convince a technical populace that the other side sucks.

    Happily slashdot readers are more savvy than this, and there are well reasoned responses in each of these articles that lay out what is going on, despite very misleading article summaries - like this story implying 60% of iPhone users pirate, when in reality it's about 5% and the 60% figure is only the percentage of apps that have pirated VERSIONS, which says nothing about number of users who are pirating any given app.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  15. Here's the flaws in their reasoning by ShooterNeo · · Score: 3, Insightful

    Ok, wait a second

    - In order to pirate an iphone app, you have to jailbreak your phone. Only a small percentage of the user base have done this

    - By measuring the total number of "phone homes", you can figure out how many copies of your app are out in the wild, INCLUDING copies on jailbroken phones.

    So if you find out that your app has 1000 copies in the wild.

    600 of those copies are on the jailbroken iphones that make up maybe 5% of the total phones.

    Therefore, you're out the revenue from those 600 copies? Nope, because if those users hadn't hacked their phones, they probably WOULD NOT have paid for your app. The reason you only have 400 sales in this scenario is that the 95% of users who are eligible to buy it weren't interested enough in your app. The jailbreaking users just grab whatever they want whenever they want, but wouldn't behave like that if they had to pay.

  16. Re:Losing to Piracy, or, Over-Estimating App Value by wrook · · Score: 5, Interesting

    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

  17. Writing it yourself isn't always possible by tepples · · Score: 4, Insightful

    I encourage would-be-pirates people to simply write it themselves.

    The same could be said about music, but that doesn't go over so well :)

    With software, United States case law recognizes methods of "reverse engineering", or copying only the (uncopyrightable) functionality of a program without copying the (copyrighted) expression of the program. Music and other non-software works don't have a corresponding exception; even if you "write it yourself", you might still infringe. George Harrison found out about this the hard way when he wrote a song only to learn later that he would have to pay hundreds of thousands of dollars in damages to someone else who had written the same song years earlier (Bright Tunes Music v. Harrisongs Music).

  18. Re:clue for the non-iphone-user by shark72 · · Score: 5, Insightful

    The reason is, of course, that Slashdotters, as a general rule, understand what goes into programming an application. We have empathy and respect for programmers for the simple reason that for some of us, it's our profession.

    Not so much with musicians. We (again -- as a general rule) characterize them as untalented and spoiled. Some people are more equal than others, and in the eyes of many Slashdotters, musicians are the least equal of all.

    We don't pirate applications because we respect the work that programmers perform. However, we elevate music piracy to a social cause worthy of Rosa Parks. Hurting musicians? No -- we're putting them in their place. They should get a day job! They should make a living selling t-shirts! They should just stop being so greedy! We deserve to use modern technology to copy their work, but how dare they try to use modern technology to make a living?

    And if that's not enough of a rationalization of music piracy, we're eager to suggest others. Just watch.

    --
    Sitting in my day care, the art is decopainted.
  19. Re:clue for the non-iphone-user by kklein · · Score: 3, Insightful

    Yes. People hear the kids practicing in the garage next door and think "music is easy." No, it isn't. If it were, everyone would make it. It's extremely time-consuming, laborious, and expensive. It is no different from software.

  20. Re:clue for the non-iphone-user by Software+Geek · · Score: 3, Interesting

    Don't conflate the issue of whether the price is fair with the issue of whether a free trial is necessary.

    I will agree with you that $1 is a ridiculously low price for a software application, and someone unwilling to pay that much should just not use the app.

    The problem is that when producers get paid in full every time a consumer evaluates the product and decides it is unusable, they start creating products that look just good enough to try out, but don't actually work. The revenues are the same, and the margins are better.

    I simply won't pay for software until I have finished evaluating it, no matter what the price. Many times, that means that I walk away from good products that I can't get for evaluation. Too bad for them.

    As a professional software developer, I understand just how much goes into creating an application. I also understand that the difference between an excellent application and a useless one can be as small as one line of code.

  21. Re:What benefit can they derive? by Fex303 · · Score: 3, Insightful

    There's no reason at all not to believe these numbers, as Pinch Media gains nothing by the numbers being higher or lower

    Not so. Pinch media make money from apps which sell advertising space. Apps which are ad funded don't care about (or even benefit from) piracy.

    As such, it's in Pinch Media's interests to make piracy seem more common, because app devs will make ad supported apps, which means Pinch get more business.