Tuesday, February 26, 2008
How Piracy Can Break An Industry - A Case Study
GameProducer.net puts things on the line about the impact of piracy in Brazil, in an article full of sobering anecdotes, statistics, and links. In a nutshell - it's gotten so bad most game companies have given up trying to sell anything there. The vicious cycle is mature there, where people are forced to pirate because they have no legal means to obtain products. It's ugly.
Local game developers, according to the article, "have only four options to survive as developers: subscription-based online games, mobile gaming, advergaming or exporting."
After the rest of the world follows in Brazil's footsteps, the fourth option will be unviable for everyone. Then what? That's the multi-billion-dollar question.
As a gamer, I personally do not relish the idea of having to either pay a monthly fee to play my favorite game (or having the game become unavailable after it gets "too old"), nor do I want to have to endure a bombardment of marketing messages in order to play a game.
There has got to be a better solution.
But as the article indicates, waiting for the government to jump in and help is useless. I think that applies as well to any other government as Brazil. Nobody's going to wave a magic wand to make the problem go away. This one is firmly gonna be in the hands of the game makers and the customers to solve.
GameProducer.net: How Piracy Can Break An Industry - The Brazilian Case
(Vaguely) related shallow thoughts:
* The Real Cost of Piracy?
* A Better Way to Fight Piracy?
* A Pirate Story
* PC Game Publishers: Please Hurt Me Some More!
- posted by The Rampant Coyote @ 4:00 PM (Permalink)
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This is sad to read. I'm working on my first game that I hope to sell and I want to be able to pay some bills and partially fund another one.
Seems like people really don't care who they are hurting anymore. Just as long as their needs are taken care of then who cares.
Sad.
Seems like people really don't care who they are hurting anymore. Just as long as their needs are taken care of then who cares.
Sad.
Yeah - having just read Ayn Rand a little over a year ago, I can kinda see a little of Atlas Shrugged here. I can just see the pirates declaring victory all the way to the point where they realize there's nothing left to rip off.
But I actually have faith in both gamers and game developers (and capitalism). We'll figure something out.
But I actually have faith in both gamers and game developers (and capitalism). We'll figure something out.
Waiting for any type of piracy legislation is pointless as you've pointed out. When the government uses games as their favorite whipping boy to try and edge up a few points, expecting them to turn around and offer any protection is laughable.
That being said, it's too bad that video game "creations" or "content" (whatever your favorite label) doesn't fall under the same bucket as the motion picture industry who vigorously pursues criminal activity around the globe...
But I like to think we'll come to a workable solution as well...
That being said, it's too bad that video game "creations" or "content" (whatever your favorite label) doesn't fall under the same bucket as the motion picture industry who vigorously pursues criminal activity around the globe...
But I like to think we'll come to a workable solution as well...
Sorry to go wagging fingers here, but I wanted to point out that the post was written by Tiago Tex Pine (not Juuso Hietalahti)who lives and develops in Brazil. He made Lex Venture, check him out http://texpine.com/games-i-did/
Correction made, Mr. Phil, thank you. Feel free to wag fingers all you want when I screw up - I do it often enough. :)
I'm used to that one being a one-person blog by Juuso, and I got so focused on the article itself I completely ignored the change in poster.
I'm used to that one being a one-person blog by Juuso, and I got so focused on the article itself I completely ignored the change in poster.
Release the wag hounds, heh heh. I almost missed that detail myself. I'm not sure if it is a one time thing or a new regular thing. But if he's got more interesting insights, I hope he gets a chance to share them.
It's not just Brazil, Venezuela is like this, too. There's just nothing to be done, there's simply NO way to legally get the games. Even if you want to. Even for double, triple the price of the game.
And unless you're one of the lucky people that gets to travel to the states and set up american bank accounts and credit cards (as I have), you can say goodbye to paypal, amazon and downloadable games as well. You can forget it.
I guess it's easy for people over there where you guys are, to just shake their heads and go 'tsk tsk, "those people" don't care who they hurt, blabla etc.' When you have no idea what the situation really is.
There is noone 'declaring victory' over anything. To see such a remark just shows how little of the actual situation you understand or even suspect.
Regardless, you are right in a 'pirating culture' has indeed grown over here out of simple need, and it really does kill any hopeful Venezuelan game developer from ever creating anything, because they will essentially be forced to pirate their own game to get people to play it, since there are no real official avenues to even distribute it. That is sad.
And unless you're one of the lucky people that gets to travel to the states and set up american bank accounts and credit cards (as I have), you can say goodbye to paypal, amazon and downloadable games as well. You can forget it.
I guess it's easy for people over there where you guys are, to just shake their heads and go 'tsk tsk, "those people" don't care who they hurt, blabla etc.' When you have no idea what the situation really is.
There is noone 'declaring victory' over anything. To see such a remark just shows how little of the actual situation you understand or even suspect.
Regardless, you are right in a 'pirating culture' has indeed grown over here out of simple need, and it really does kill any hopeful Venezuelan game developer from ever creating anything, because they will essentially be forced to pirate their own game to get people to play it, since there are no real official avenues to even distribute it. That is sad.
# posted by 
: February 28, 2008 10:47 PM
: February 28, 2008 10:47 PM
@kinrove - I feel for your situation. Like I said, it's a vicious cycle. Some countries just get kicked off the e-commerce list because the rate of fraud to legitimate orders is way too high.
Basically, one fraudulent order cancels out one and a quarter legitimate orders in chargeback fees (which, through one e-commerce provider, costs about $25). Eventually, it reaches a point where it costs more to do business in a country than to try and stay in business. It's like trying to set up a corner grocery store in a neighborhood where you are being robbed every day.
The "declaring victory" comment was not aimed at a particular country, but at the worldwide situation, and more specifically towards attitudes here in the United States. So I hope you don't take offense. Bottom line - when nobody pays for a game, very few games will be made. In any country.
That's the reality of the situation, and it sucks. For both of us.
Basically, one fraudulent order cancels out one and a quarter legitimate orders in chargeback fees (which, through one e-commerce provider, costs about $25). Eventually, it reaches a point where it costs more to do business in a country than to try and stay in business. It's like trying to set up a corner grocery store in a neighborhood where you are being robbed every day.
The "declaring victory" comment was not aimed at a particular country, but at the worldwide situation, and more specifically towards attitudes here in the United States. So I hope you don't take offense. Bottom line - when nobody pays for a game, very few games will be made. In any country.
That's the reality of the situation, and it sucks. For both of us.
I'm developing methods to combat software piracy (not music or video).
I have posted a solution to software piracy on the Microsoft Forums. Please come and share you ideas and comments there:
http://forums.microsoft.com/Genuine/ShowPost.aspx?PostID=2971205&SiteID=25
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I have posted a solution to software piracy on the Microsoft Forums. Please come and share you ideas and comments there:
http://forums.microsoft.com/Genuine/ShowPost.aspx?PostID=2971205&SiteID=25
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