Pirates as a Marketplace

John Riccitiello, the CEO of Electronic Arts, made some revealing comments in an interview with Kotaku about how the company's attitudes are shifting with regard to software piracy. Quoting: "Some of the people buying this DLC are not people who bought the game in a new shrink-wrapped box. That could be seen as a dark cloud, a mass of gamers who play a game without contributing a penny to EA. But around that cloud Riccitiello identified a silver lining: 'There's a sizable pirate market and a sizable second sale market and we want to try to generate revenue in that marketplace,' he said, pointing to DLC as a way to do it. The EA boss would prefer people bought their games, of course. 'I don't think anybody should pirate anything,' he said. 'I believe in the artistry of the people who build [the games industry.] I profoundly believe that. And when you steal from us, you steal from them. Having said that, there's a lot of people who do.' So encourage those pirates to pay for something, he figures. Riccitiello explained that EA's download services aren't perfect at distinguishing between used copies of games and pirated copies. As a result, he suggested, EA sells DLC to both communities of gamers. And that's how a pirate can turn into a paying customer."

Comments

Half a game?

[Rik Sweeney]

As a result, he suggested, EA sells DLC to both communities of gamers. And that's how a pirate can turn into a paying customer.

So what you're saying is that we should only sell half the game in the shops and make the customer download the rest of it as DLC?

Re:Half a game?

[Grygus]

I think the opposite is true; you need a quality game for this to work. There is a class of pirate who isn't going to buy anything, no matter what. He can be ignored for the purposes of this conversation. There is another class of pirate who regards torrents as a sort of extended demo program. These guys either buy games that turn out to be good, or at least they wouldn't object to that behavior even if they often never seem to get around to buying the game. That's the target here.

If you put out a game that is good enough right out of the box (or the original torrent in this case), and then issue compelling DLC they might well go ahead and purchase the DLC if that's easier than (or just as easy as) getting a torrent. A lot of these people aren't stealing for financial reasons; they're stealing because the pirated version of most games is actually superior in some way(s) to the retail version. DRM is removed, you don't need the CD in the drive, and it's convenient to acquire. If the DLC doesn't introduce any of those inconveniences, and if the button to buy it is right there on the launcher or even in-game (like in Dragon Age,) I bet there are in fact some pirates who are stealing the game but then buying DLC.

I don't think it's a solution; there is no solution to piracy unless your game was free of charge to begin with. However, I think it's a healthy attitude and I think it's a step in the right direction; instead of seeing piracy as this holy war to fight, approach it as a sales problem.

Re:Half a game?

[Kamokazi]

It's that kind of stupid thinking that made me pirate the DLC for Dragon Age. I paid the full $50 and change for the game, then I pirated all the DLC, even the free DLC (Which, IMO, was much better than paid...Soldier's Peak kinda sucked), because to hell if I am going to phone home to EA every time I play the game.

I do this because I think DLC has turned into nothing but greed. I was always a big fan of expansion packs....$20-30 for a nice lump of additional story or content. Then a few DLC-ish things started popping up here and there, which wasn't bad either. A nice string of extra content, priced reasonably. Apparently it was quite popular, as it evolved into the monster system we have now, where DLC is oftentimes content that should have been present from launch.

Also I think DLC is targeted at used much more than pirated...this is just smoke and mirrors to hide their true ambition, in that they want to get paid for every person who uses a copy...and not paid for a single copy that changes hands a few times. Otherwise they wouldn't give out 'free' DLC with every copy of the game...a pirate will just pirate it, but a used buyer may not.

Re:Half a game?

[Bakkster]

As a result, he suggested, EA sells DLC to both communities of gamers. And that's how a pirate can turn into a paying customer.

So what you're saying is that we should only sell half the game in the shops and make the customer download the rest of it as DLC?

As long as the game in stores costs half as much, or gives credit to download the other half of the game, that seems acceptable to me.

Some genres of game might even be better because of it. For example racing, sports, and music games.
Racing: a core group of cars from all the classes, then download packs for american muscle, touring cars, exotics, supercars, japanese late-models, etc. You only pay for the cars you want.
Sports: soccer (football) game where you only buy the leagues you want to play. MLS, premier, and national teams, for example.
Music: same idea, buy the disc and get $X to spend on downloadable songs. Never have to play that song you hate, just don't buy them.

Of course, this is predicated on the idea that the initial game would be cheaper (har har), and the DLC of course necessitates DRM (otherwise it all gets pirated, and it's a bunch of extra work for no pay). This would work great in theory, but in practice I imagine nothing good.

Re:Half a game?

[commodore64_love]

>>>There is a class of pirate who isn't going to buy anything, no matter what. He can be ignored for the purposes of this conversation.

Awww.

(walks off)

Re:Half a game?

[Lord Lode]

You mean: Winrarrrrrrrrrrrrrrrrrr!

Re:Half a game?

[TheLink]

FWIW, my bro bought a pirate version of GTA3 from the local "unauthorized distributor". Yes he didn't download it, it's just more convenient to just buy it.

So after playing many hours of it, he decides that the GTA bunch (Rockstar/Take Two Interactive) deserve some money, so he tries to buy a legit copy of GTA3 but it was banned (in this country) so there was no legit copy around to buy.

So when he was in another country, he tried buy it, but it was banned there too :).

I figure if the GTA bunch had made it easier to pay them, they'd have the money.

We preferably don't want to pay for shipping, distribution, shop's margin and all the other crap - the pirate shop has already done that for us, just let us pay the difference? That's fair right? They get what they'd normally get from the sale, and we get what we want (the game).

It'll be interesting if list price from pirate + GTA bunch's normal cut < list price from legit shop.

Of course that could be because the pirate shop sells more than a legit shop (cheper) and people don't necessarily pay the normal cut to the game makers. BUT, if it turns out to be much cheaper, perhaps the game makers might make more by working better with the pirate shops and other "unauthorized distributors" :).

Many of the "pirates" are already happy users of the software. Just make it easy for them to pay, and don't make it annoying - just have the link present on the main menu - obvious but not annoying. For example have something that says "If this game is a nonlegit copy, but you really like it, click here to pay us a discounted price". Not all will pay, but the more they play the game, the more likely many of them will just go "this game is great, I guess they deserve X bucks (which should be a _lower_ price than RRP).

Years ago, one of the Microsoft bosses in my country scolded subordinates for going hard on people that were using pirated Microsoft Software (reporting them to BSA/courts _immediately_). Told them in effect "These people are already happy Microsoft users, all you have to do is get them to pay". And it's an easy sale - just go to the users and say, pay us "$$$"/copy now or have the court tell you to pay far more per copy. I'm sure they did give some discounts/special payment terms in some cases (many businesses just don't have all that cash available to go legit immediately). But they've already got all the software installed and configured - no cost to Microsoft, get the money, give them the license keys. Pure profit. No need for sales talks, presentations and "expense account spending". In contrast I've heard some cases in USA where Microsoft went hard on companies and those companies just completely stopped using Microsoft as a result (and as long as the CEOs are still around their companies will never buy Microsoft).

Do it right and it's an opportunity for you, do it wrong and it's an opportunity for someone else :).

Thanks buddy

[Jedi Alec]

And that's how a pirate can turn into a paying customer.

And why I, a legitimate customer, can't play Dragon Age if my net connection is down, because the game checks if I'm really entitled to start that savegame with DLC content in it.

In other news, the amount of legitimate Dragon Age + DLC owners planning on getting a pirate copy of Mass Effect just increased by 1.

I don't think anybody should pirate anything

[Ynot_82]

'I don't think anybody should pirate anything,' he said. 'I believe in the artistry of the people who build [the games industry.] I profoundly believe that

Really? Funny old world, isn't it
I distinctly remember EA being sued a while ago for copyright infringement.
They used a piece of music in their games without permission from the composer
Anyway...

Re:Link?

[Rik Sweeney]

It only links to part of the article, you have to purchase the rest as DLC

:)

EA is a pirate!

[CmpEng]

I used to heavily play BF2142 and then decided to take a break. Upon finding the game stashed away in my closest I wanted to try playing it again with some old university friends on my new computer. Needless to say, after contacting EA they would not validate my account ( their server said my account had already been activated )and the game would simply not work for online play anymore ( the vast majority of game and only way to unlock upgrades is online ). So regardless of the that I was the original purchaser, with box and serial in hand, I was out my purchase of BF2142. I have otherwise always purchased my games and respected copyright but this experience has been a turning point for me with EA. If you're going to lock honest people out of their own products you can't be upset that your products get pirated; because you're pirating the funds they paid you.

Notice how they try to cast second sale as pirates

[Anonymous Coward]

See the grouping they're doing with pirates and second-sale customers? In their minds, they're the same, but they aren't. Second sale are legitimate customers, buying used games from previous game owners. They want to stamp this out, because they don't get a second cut, and spinning it into piracy in people's minds is the first step.