Piracy: The Gaming Industry in Perspective & the Coming Storm

Significant to SD/IC in a big way...

http://www.gamesindustry.biz/content_page.php?aid=33624

I was doing my normal 3:00AM thing of reading news for a new day, when I should be sleeping like a normal person and I came across and very well written commentary on the coming storm that may yet still be avoided by game developers across the board.

What is the coming storm? It is the cold hard realization that the traditional business model employed in the gaming industry is severely flawed and in all likelihood utterly ruined already. The immediate question that naturally arise is 'what will/can the industry about it?'

Now what does this have to do with SD/IC you may be thinking? Well, without stealing the thunder of the article, let's say that the industry could learn a lot from SD/IC.

If you are interested in a well developed commentary please follow the link to the GamesIndustry.biz website.


Rob Fahey inked the editorial and entitled it User Friendly.



UPDATE: The original story link is here. I have changed the link since the editorial has been officially credited.

242,481 views 156 replies
Reply #1 Top
I agree. I purchased sins because it was $39.99, fairly cheap as far as games go; especially compared to console games. Patapon just came out on PSP for the price of $19.99, and I'm going to go pick that up too. Regularly PSP games cost $29.99 and $39.99, and I'd just pirate them because I just can't afford that kind of money on a game I'd spend 10 hours on at most.

Both games mentioned above are trying something very creative and new, and I also feel strongly that I should support both so developers figure out where the money is.
Reply #2 Top
The reality is that when pirates are offering a better user experience than you are, your business model is broken


This is what it boils down to.

Reply #3 Top
Are you talking about the same commentary from Chris Taylor at Gas Powered Games? I already left a pair of comments on the IGN article. I think he and others with the same opinion are way off base especially when the dodge the issue of console piracy (which has surpassed PC piracy). The PC market is made up a lot of lower end or mobile systems these days while most game developers keep organizing with Nvidia to sell the highest-end super-expensive graphics equipment on top of over-priced half-finished games. Recently, Sega released a game that requires cd-keys but failed to put them in the retail boxes. You just can't do that on a PC.
Reply #4 Top
Yeah i was joyfully surprised by the price of sins of a solar empire.

Now here's a fact, i live in Canada, and although the Canadian dollar is pretty much equal to the American dollar, we still are mostly overcharged for electronic goods.(and also fuel, we pay the equivalent of over 5$ a gallon now, sigh).

so say a game is 49,99 in the US, we pay 59,99. 59,99 is basically the normal price of a new game, be it on 360/ps3 or PC. Some of the more expensive, regular edition console games can cost 69,99 and grossly content limited special editions will cost us 79,99(Im looking at you, need for speed carbon: black edition). At least we started paying US price for mega expensive bundles now(some, not most). A Psp game here costs between 39,99 and 49,99 and DS games vary from 25,99 to 39,99. So yeah we pay a lot compared to our next door neighbours in some cases even though our currency is basically worth the same.

So you can bet i was joyfully surprised and giddy with excitement when i found out sins cost 39,99 up here. And that price is also the reason why i jumped on it instead of waiting a month or two(possibly forgetting about it). And the best part? I get the experience if a "full priced" PC game but i payed 20$ less. So yeah, Game developpers should follow the example of SD/IC in terms of pricing model, that price difference can mean the difference between someone stealing it or buying it.
Reply #5 Top
@ZJBDragon - sadly the commentary is not credited to anyone. I think it may be done by Phil Elliott but dont quote me on that as it is only a guess. I dont think it is Chris's since he is referenced in it by name and only people with serious mental issues refer to themselves in the third person. Moreover the comments directed at Chris's position are not entirely supportive to say the least.

For what it is worth, if I were to write an article of this nature the article at hand is pretty damn close to what I would say.

BTW: I agree with your position as posted on IGN. i only switched to Steam after a long heart felt search and the fact that it does not do IP checks for purchases. Nothing pisses me off more then trying to buy a game and getting told "sorry your IP is not authorized for this product" or "not available in your region". That is when I hoist my flag...

So when Steam corrected its DRM bullshit and became more stable and started to offer several titles I was forced to acquire on the high seas, I had no reasonible choice not to go the Steam route. After all it is not like money for this stuff is a concern of mine only quality, convenience, service and support. I think I'm a pretty easy going consumer.
Reply #6 Top
so say a game is 49,99 in the US, we pay 59,99. 59,99 is basically the normal price of a new game, be it on 360/ps3 or PC. Some of the more expensive, regular edition console games can cost 69,99 and grossly content limited special editions will cost us 79,99(Im looking at you, need for speed carbon: black edition). At least we started paying US price for mega expensive bundles now(some, not most). A Psp game here costs between 39,99 and 49,99 and DS games vary from 25,99 to 39,99. So yeah we pay a lot compared to our next door neighbours in some cases even though our currency is basically worth the same.


And that's still cheap! In the UK, where the £ is worth almost $2 US, a game that would be $39.99 is usually £39.99 - almost $80!! Windows Vista as an example, all the did was change the $ symbol to a £ symbol! And electronic goods are the same. And I think that this cost is partially the reason why some people don't buy games and simply pirate them.

I was pleasantly surprised to only pay £20 to £25 for Sins (credit card bill hasn't come through yet, so I don't know the exchange rate they used...). It was extremely good value for money.
Reply #7 Top
Main reason I bouth Soase is because they distributed it online, for reasonable price and no copy protection. I swore to never buy a copy protected game which is not distributed online. I either buy my games trough steam or other online services(like stardock or d2d). Everything else I never buy (though sometimes play).
Reply #8 Top
59,99 is basically the normal price of a new game, be it on 360/ps3 or PC. Some of the more expensive, regular edition console games can cost 69,99 and grossly content limited special editions will cost us 79,99(Im looking at you, need for speed carbon: black edition). At least we started paying US price for mega expensive bundles now(some, not most). A Psp game here costs between 39,99 and 49,99 and DS games vary from 25,99 to 39,99.


If you are still paying $60 for your PC games you are shopping in the wrong stores. I haven't seen a new PC game for $60 in over a year. They've pretty much all dropped to $50 new. 360/PS3 games are indeed $60, but that's the same price it is down in the states. Try looking around a little more.

Reply #9 Top
@Deraldin - I am of the firm opinion that $50 is way to much for 99% of titles released. There are very few exceptions to this position. I think the sweet spot for most gamers is $30 for a standard title release and $40 for collectors edition. This is of course for boxed items. Digital downloads should be accordingly priced and on-line services offered for titles should be factored into the mix as well for fairness.
Reply #10 Top
Video game piracy is still a tiny fraction of overall piracy. Something like 70-80% of piracy is movies and TV shows (TV SHOWS! Some 'piracy').
Reply #11 Top
I don't see TV shows as "piracy". If it aired on TV it should be completely free for download. It' stupid to try to restrict its availability after it got aired for the whole world to see.
Reply #12 Top
I don't see TV shows as "piracy". If it aired on TV it should be completely free for download. It' stupid to try to restrict its availability after it got aired for the whole world to see.
i dont know about in america but in the UK nearly all the terrestial channels put there TV shows online for viewers to watch at the times they want to these days.

i guess it better that they get the traffic to there websites than some torrent site as they will get more revenue from there banner adds, you can watch nearly all the channels shows in media player aswell so your not stairing at some website with banner adds once you start watching.

i guess american companys prefer to sell there shows on itunes though....
Reply #13 Top
Some of the networks in the USA are putting shows on-line but they restrict viewing to local markets only and most of them inject ads into the show. So for those of us outside of the USA torrent sites are the only viewing option. Hell one cant even buy many DVDs of the shows due to region restrictions. It is total utter bullshit.
Reply #14 Top
In south america a 49.99 game cost 90.00. Since most economies here are way behind dolar/euros, games cost way to much.
Reply #15 Top
Some of the networks in the USA are putting shows on-line but they restrict viewing to local markets only and most of them inject ads into the show. So for those of us outside of the USA torren


people outside of the usa could always just use an american proxy
Reply #16 Top
Iron Lore, makers of the excellent Titan Quest game, just closed it's doors this month.

Here's what one of the producers of Titan Quest had to say:


Titan Quest - Frustrations of a PC Developer
by Dhruin, 22:22

Michael Fitch - one of THQ's producers on Titan Quest - has let rip with frustrations on PC game development in a post at QT3. Clearly, the closure of Iron Lore is driving the anger but it's still an interesting read:

Greetings:
So, ILE shut down. This is tangentially related to that, not why they shut down, but part of why it was such a difficult freaking slog trying not to. It's a rough, rough world out there for independent studios who want to make big games, even worse if you're single-team and don't have a successful franchise to ride or a wealthy benefactor. Trying to make it on PC product is even tougher, and here's why.

Piracy. Yeah, that's right, I said it. No, I don't want to re-hash the endless "piracy spreads awareness", "I only pirate because there's no demo", "people who pirate wouldn't buy the game anyway" round-robin. Been there, done that. I do want to point to a couple of things, though.

One, there are other costs to piracy than just lost sales. For example, with TQ, the game was pirated and released on the nets before it hit stores. It was a fairly quick-and-dirty crack job, and in fact, it missed a lot of the copy-protection that was in the game. One of the copy-protection routines was keyed off the quest system, for example. You could start the game just fine, but when the quest triggered, it would do a security check, and dump you out if you had a pirated copy. There was another one in the streaming routine. So, it's a couple of days before release, and I start seeing people on the forums complaining about how buggy the game is, how it crashes all the time. A lot of people are talking about how it crashes right when you come out of the first cave. Yeah, that's right. There was a security check there.

So, before the game even comes out, we've got people bad-mouthing it because their pirated copies crash, even though a legitimate copy won't. We took a lot of **** on this, completely undeserved mind you. How many people decided to pick up the pirated version because it had this reputation and they didn't want to risk buying something that didn't work? Talk about your self-fulfilling prophecy.

One guy went so far as to say he'd bought the retail game and it was having the exact same crashes, so it must be the game itself. This was one of the most vocal detractors, and we got into it a little bit. He swore up and down that he'd done everything above-board, installed it on a clean machine, updated everything, still getting the same crashes. It was our fault, we were stupid, our programmers didn't know how to make games - some other guy asked "do they code with their feet?". About a week later, he realized that he'd forgotten to re-install his BIOS update after he wiped the machine. He fixed that, all his crashes went away. At least he was man enough to admit it.

So, for a game that doesn't have a Madden-sized advertising budget, word of mouth is your biggest hope, and here we are, before the game even releases, getting bashed to hell and gone by people who can't even be bothered to actually pay for the game. What was the ultimate impact of that? Hard to measure, but it did get mentioned in several reviews. Think about that the next time you read "we didn't have any problems running the game, but there are reports on the internet that people are having crashes."

Two, the numbers on piracy are really astonishing. The research I've seen pegs the piracy rate at between 70-85% on PC in the US, 90%+ in Europe, off the charts in Asia. I didn't believe it at first. It seemed way too high. Then I saw that Bioshock was selling 5 to 1 on console vs. PC. And Call of Duty 4 was selling 10 to 1. These are hardcore games, shooters, classic PC audience stuff. Given the difference in install base, I can't believe that there's that big of a difference in who played these games, but I guess there can be in who actually payed for them.

Let's dig a little deeper there. So, if 90% of your audience is stealing your game, even if you got a little bit more, say 10% of that audience to change their ways and pony up, what's the difference in income? Just about double. That's right, double. That's easily the difference between commercial failure and success. That's definitely the difference between doing okay and founding a lasting franchise. Even if you cut that down to 1% - 1 out of every hundred people who are pirating the game - who would actually buy the game, that's still a 10% increase in revenue. Again, that's big enough to make the difference between breaking even and making a profit.

Titan Quest did okay. We didn't lose money on it. But if even a tiny fraction of the people who pirated the game had actually spent some god-damn money for their 40+ hours of entertainment, things could have been very different today. You can bitch all you want about how piracy is your god-given right, and none of it matters anyway because you can't change how people behave... whatever. Some really good people made a seriously good game, and they might still be in business if piracy weren't so rampant on the PC. That's a fact.

Enough about piracy. Let's talk about hardware vendors. Trying to make a game for PC is a freaking nightmare, and these guys make it harder all the time. Integrated video chips; integrated audio. These were two of our biggest headaches. Not only does this crap make people think - and wrongly - that they have a gaming-capable PC when they don't, the drive to get the cheapest components inevitably means you've got hardware out there with little or no driver support, marginal adherence to standards, and sometimes bizarre conflicts with other hardware.

And it just keeps getting worse. CD/DVD drives with bad firmware, video cards that look like they should be a step-up from a previous generation, but actually aren't, drivers that need to be constantly updated, separate rendering paths for optimizing on different chips, oh my god. Put together consumers who want the cheapest equipment possible with the best performance, manufacturers who don't give a **** what happens to their equipment once they ship it, and assemblers who need to work their margins everywhere possible, and you get a lot of ****ty hardware out there, in innumerable configurations that you can't possibly test against. But, it's always the game's fault when something doesn't work.

Even if you get over the hump on hardware compatibility - and god knows, the hardware vendors are constantly making it worse - if you can, you still need to deal with software conflicts. There are a lot of apps running on people's machines that they're not even aware of, or have become such a part of the computer they don't even think of them as being apps anymore. IM that's always on; peer-to-peer clients running in the background; not to mention the various adware and malware crap that people pick up doing things they really shouldn't. Trying to run a CPU and memory heavy app in that environment is a nightmare. But, again, it's always the game's fault if it doesn't work.

Which brings me to the audience. There's a lot of stupid people out there. Now, don't get me wrong, there's a lot of very savvy people out there, too, and there were some great folks in the TQ community who helped us out a lot. But, there's a lot of stupid people. Basic, basic stuff, like updating your drivers, or de-fragging your hard drive, or having antivirus so your machine isn't a teetering pile of rogue programs. PC folks want to have the freedom to do whatever the hell they want with their machines, and god help them they will do it; more power to them, really. But god forbid something that they've done - or failed to do - creates a problem with your game. There are few better examples of the "it can't possibly be my fault" culture in the west than gaming forums.

And while I'm at it, I don't want to spare the reviewers either. We had one reviewer - I won't name names, you can find it if you look hard enough - who missed the fact that you can teleport from wherever you are in TQ back to any of the major towns you've visited. So, this guy was hand-carting all of his stuff back to town every time his inventory was full. Through the entire game. Now, not only was this in the manual, and in the roll-over tooltips for the UI, but it was also in the tutorial, the very first time you walk past one of these giant pads that lights up like a beacon to the heavens. Nonetheless, he missed it, and he commented in his review how tedious this was and how much he missed being able to portal back to town. When we - and lots of our fans - pointed out that this was the reviewer's fault, not the game's, they amended the review. But, they didn't change the score. Do you honestly think that not having to run back to town all the time to sell your stuff wouldn't have made the game a better experience?

We had another reviewer who got crashes on both the original and the expansion pack. We worked with him to figure out what was going on; the first time, it was an obscure peripheral that was causing the crash, a classic hardware conflict for a type of hardware that very, very few people have. The second time, it was in a pre-release build that we had told him was pre-release. After identifying the problem, getting him around it, and verifying that the bug was a known issue and had been fixed in the interim, he still ran the story with a prominent mention of this bug. With friends like that...

Alright, I'm done. Making PC products is not all fun and games. It's an uphill slog, definitely. I'm a lifelong PC gamer, and hope to continue to work on PC games in the future, but man, they sure don't make it easy.

Best,
Michael.
Reply #17 Top
Michael's open letter to the gaming community is an interesting read to say the least. With that said I have a few comments on it.

On the game side of things it sounds like a clear cut case of death by DRM to me. Being a staunch anti DRM person I cant say I have any sympathy since doing stuff like that adds no value to the game and needlessly complicates the code and opens up possible avenues of issues which simply would not be possible without it. Additionally there are the obvious effects as he so painfully pointed out. Moreover there is absolutely zero benefit for the legitimate consumer. It is exactly like rigging your house with deadly traps in case someone breaks in and you kill them. Guess what? You will be charged by the government despite your "property rights" being violated. So why do it? DRM is a cancer to everyone both the good and the bad people. As soon as the players in the industry finally accept that the better it will be for everyone.

With regards to the hardware issues, system configuration and drivers as well as the stupid user base I have to agree wholeheartedly with his assessment. That is why I get irked when I see posts on forums with inflammatory titles and misleading, uninformed, and uneducated opinions as well as the ones with mindless dribble in them.

On the topic of the stupid reviewer again I have to agree with his position. Many reviewers spend precious few hours with a title due to production schedules and available staff as well as other issues. That is why I have always wanted to see a "time spent" as well as a "completed game" metric prominently displayed on all reviews. Moreover displaying a fully fleshed out system speck list that the title was reviewed on would also be a big help for the discerning consumer.
Reply #18 Top
so say a game is 49,99 in the US, we pay 59,99. 59,99 is basically the normal price of a new game, be it on 360/ps3 or PC. Some of the more expensive, regular edition console games can cost 69,99 and grossly content limited special editions will cost us 79,99(Im looking at you, need for speed carbon: black edition). At least we started paying US price for mega expensive bundles now(some, not most). A Psp game here costs between 39,99 and 49,99 and DS games vary from 25,99 to 39,99. So yeah we pay a lot compared to our next door neighbours in some cases even though our currency is basically worth the same.And that's still cheap! In the UK, where the £ is worth almost $2 US, a game that would be $39.99 is usually £39.99 - almost $80!! Windows Vista as an example, all the did was change the $ symbol to a £ symbol! And electronic goods are the same. And I think that this cost is partially the reason why some people don't buy games and simply pirate them.I was pleasantly surprised to only pay £20 to £25 for Sins (credit card bill hasn't come through yet, so I don't know the exchange rate they used...). It was extremely good value for money.



In France it is same song. 45 US $ changes to 45 euros or with today rate it means 50 % of increase just because they changed the region. Same goes for hardware.

Reply #20 Top
I just remembered something, i own a 360 along with a PC that can run crysis on high settings. It is very rare i buy a console to pc port, i buy the 360 version of the game instead.

So people like me account for lower sale figures on the PC when they try to port something over from console to PC. I have my 360 mainly for the future when i travel and will not have access to my PC for months. With few exceptions (COD4), i buy the console version. When they port even the best of these games to PC though you can really see how it is dumbed down compared to PC based games.

Reply #21 Top
I just remembered something, i own a 360 along with a PC that can run crysis on high settings. It is very rare i buy a console to pc port, i buy the 360 version of the game instead. So people like me account for lower sale figures on the PC when they try to port something over from console to PC. I have my 360 mainly for the future when i travel and will not have access to my PC for months. With few exceptions (COD4), i buy the console version. When they port even the best of these games to PC though you can really see how it is dumbed down compared to PC based games.


A most excellent point. Many of these "stats" touted by the industry treat the platforms as independent markets when in fact they are all the same -really.
Reply #22 Top
...It would do a security check, and dump you out if you had a pirated copy....


Seems like it would be a lot smarter to have it say failed to find cd, or some valid feedback instead of just crashing. That seems like an extremely poor design decision on his part.

The research I've seen pegs the piracy rate at between 70-85% on PC in the US, 90%+ in Europe, off the charts in Asia.


This seems way too high of an estimate. Are there like 30 or 40 million copies of the sims floating around in the US alone? Worldwide that would be (complicated math), 160 million pirated copies of the first sims game, not including the sequel or any of the expansions?
Reply #24 Top
Stardock should go scoop up the ILE staff :D
Reply #25 Top
I don't mind anti piracy as long as its not intrusive. People complain about Relic's method (either log onto Relic Online or have the DvD in the drive) yet I found it superior to Steam or over systems because if the servers were down I could still play and didn't install nasty things or complain for no reason.

If some one breaks into your shed, you would put a lock on it. Its not really different with games, but Stardock is doing pretty well without a lock, but its hard to track these kinds of things.