1
Mar

Entertainment as a Service

   Posted by: GarethF   in Game Design Ramblings, Gaming

So I’ve talked at length about the piracy vs DRM thing, right. It’s probably pretty obvious that I don’t buy the argument that “pirates wouldn’t buy the game anyway/couldn’t afford it”, not by half. Nor do I believe DRM to be the crime against humanity that a lot of hysterical types like to claim. The huge numbers of people who happily use Steam and play MMOs, despite both suffering from exactly the same fundamental drawbacks of other DRM schemes, indicates that it isn’t DRM that is really the problem, it’s what you offer in exchange for the added hassle that is the determining factor.

But that isn’t what this post is about. My thoughts on that subject might make it seem like I believe primarily in countering piracy with DRM, and that I’ll be focusing on such with SoW. Not so.

It is possible to do DRM right, as I’ve said before. But I believe it’s a huge risk. You slip and the backlash can eat you alive. Not everyone is Valve with a hugely popular title to soften the blow and get you through the birth pains, nor does everyone have deep enough pockets to fund the development of a digital distribution platform. 

Not only do I think DRM a huge risk, I think there is another way. I’m not sure which way is better, dollar for dollar, but the second way is far less risky and, frankly, more pleasant and enjoyable, both for me as a developer and for customers. So I’m going with it.

This other direction that I’m talking about is to treat game development not as selling a product but as providing an entertainment service. You don’t just develop a game and drop it in peoples laps. You continually interact with and serve your customers, growing the value of the thing they have paid for. It’s this concept which makes people willing to keep paying for MMOs, if you ask me.  A continuous stream of “new stuff” keeps pulling people back in and paying those fees every month.

Not only does it draw in customers, a service is a lot harder/time consuming for pirates to emulate. They’d have to sit there and doggedly crack/distribute each and every update you put out. While some may keep it up for a while, the nature of these hacker kids works in your favor.  Most hacker groups are jostling for prestige. Their focus and attention is mainly on the big name titles, the new and shiny. The group who cracks Mass Effect 2 the week it comes out gets more kudos than the guys who crack the 45th small update to some game that came out a year ago, yes? In all likelihood I think that after a while they’d just not be paying attention anymore. Even if they were, the pirated copies on torrent sites  would get outdated. Some might have a few of the updates, others might have a few more, but people looking for the latest version of your game would have a harder time sifting through the old stuff for it. And all the while there is the temptation to just go to your site, pay the price and get all the updates easily. The balance shifts and the draw of convenience now favors the developer instead of the pirates.

Gabe Newell of Valve gave a presentation at DICE recently and it’s obvious that Valve have reached a similar conclusion. Better yet, thanks to Steam, Valve’s conclusions are supported by hard numbers instead of gut instinct. :)

While I don’t buy Gabe’s statement that “pirates aren’t really seeking to get things for free.” (sorry, no, in 90% of cases I’ve seen they are most defintely motivated by free stuff), he presents some really interesting stats :

- Valve treats Team Fortress 2 as a service more than a game. There have been 63 updates to TF2 since release.

- Sales spike by huge amounts everytime there’s a sale or major update. Steam sales went up 106% after a free update. Player minutes went up by 105%.

- Gifting has thrown a 71% sales increase. Surprisingly, sales from retail stores also went up by 28%. Finally, it saw 75% increase in new users.

- Recent sale for Left 4 Dead saw a 3000% jump in sales, figures greater than the launch weekend. Retail sales remained constant.

Actual numbers : 

  • 10% sale = 35% increase in sales (real dollars, not units shipped)
  • 25% sale = 245% increase in sales
  • 50% sale = 320% increase in sales
  • 75% sale = 1470% increase in sales

 

Fairly awesome figures. I’d really like to see the results of pricing a title at 75% right off from the start of it’s lifecycle, to see if the sales jumps are due to the lower price or simply the perception of getting a “great deal”. Psychologists and salespeople already know the power of promoting something as “on sale”, I’m not sure you’d see such dramatic figures if the lower price was the baseline. The power of the percieved time-limited bargain might be solely responsible.

More interesting to me is the jump in sales after each update. Remember, these updates we’re talking about aren’t exactly expansion packs. It’s stuff like new maps, new items, etc. Yet it brings the game back into the mass consumer awareness, it grows the value of the product, it generates good will and it ensures product longevity. It’s also a vastly more efficient to generate additional profit by extending an existing game than it is to create a new title. The expense vs return ratio is highly favorable.

And it’s far more pleasing to the gamer than a burdonsome DRM scheme, yes?

So with this in mind, I plan to do something similar with SoW. A program of regular updates and extensions, released for free for existing cusomers. Since SoW is a story-based RPG, you might be worried when I say that that I’m going to do that lame “writing as part one in a trilogy” thing that games like Assassin’s Creed and Too Human did. Nope. SoW is standalone, the plot resolves.

And I don’t really think that adding stuff like Bethesda’s Horse Armor would make much sense in a story-RPG. If the game is balanced, adding in “neat stuff” down the line just because might be unbalancing. And quite frankly I wouldn’t play through again just for a shiny item.  

No, I’m thinking more along the lines of mini-expansions. Something like Bioware’s premium modules for NWN. SoW is standalone, but I built the world as a world, a setting. I cover only a small fraction of what I have created in the plot of SoW, some things will only be hinted at or perhaps not even that. There is plenty of space for further stories in that world. 

Not only that, I could use the mini-expansions to test out new gameplay ideas. Storm of Zehir recently toyed with adding an economic simulation to the game. The idea intrigues me. I hear the implementation wasn’t that great, but maybe it could be. Or the managing-a-stronghold aspects of NWN2. I’d like to play around with those ideas, a mini-expansion where people can try it out for size makes a fun change of pace and gives me valuable feedback.

I can also try other styles of storyline in the mini-expansions. Dungeon crawling, horror, a pure political/social adventure. Deeper exploration of SoW’s factions, exploration of some of the factions and nations that aren’t playable in SoW…I have a lot of ideas I can try. And if they lead to sales increases anywhere near what Valve sees…well, that would please me greatly. :)

This entry was posted on Sunday, March 1st, 2009 at 12:36 pm and is filed under Game Design Ramblings, Gaming. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

21 comments so far

 1 

There’s something I’d like to know about piracy: How many pirates are from China, Russia and Latin america compared to the rest of the world? Because to us, buying games is extremely expensive due to taxes and exchange rates that screw us over.
For example, a 10 dollar game for you guys would be stupidly cheap. Here in Argentina? Well, first let’s suppose the best case scenario, let’s say that said game is distributed digitally and I have an international credit card, so I have the means to pay for it.
That game would cost me 36 pesos at best, which is not a trivial sum by any means (a movie ticket costs 15 pesos).

A 60 dollar game? Distributed in retail stores? Oh, those things normally cost 220 pesos, which is INSANE.

See what I’m getting at here? Buying games here is not an option. Not only do we get a watered down selection of games at retail, the prices are too high for anybody who doesn’t bathe in money every day.

We’ve been in this state since 2001. In all this time, thanks to all the things I’ve described, piracy became the norm. Nobody even thinks of buying the original anymore because we all know that nobody can pay it, and if someone does then he/she is stupid.
If you see a games’ store, chances are they are selling a myriad of pirated games for PC, for PS2, for 360 and for Wii. Sometimes they even sell pirated cartridges for the “Family Game” (A copy of the NES that is still selling here, why? because it’s dirt cheap). At plain sight. And nobody raises an eyebrow. Everybody pirates, it’s part of our culture now.
Granted, there are some decent people left who buy the originals whenever they enjoy the game, but they still pirate.

So, what I’m getting at is:
When you say “I don’t buy the argument that “pirates wouldn’t buy the game anyway/couldn’t afford it”,” … it makes me want to shout expletives at the monitor. If we are getting the shaft, I can’t even begin to imagine what Russia had to go through (and still has). I don’t know enough about China to make an educated guess though, but I heard that their retail pirate stores are exactly the same as ours, or even worse in some cases.
Solving a cultural issue like this would take decades, and that’s if the goverments cared about it. We are a lost market to the gaming world but somehow our downloads are considered as lost sales. Give me a break.

March 1st, 2009 at 7:05 pm
 2 

Oh, I forgot to mention that cell phone games are blooming like there’s no tomorrow. Why? Because they are inexpensive, easier to pay for than to torrent and pirate stores can’t sell them as easily.

March 1st, 2009 at 7:09 pm
Kris
 3 

A fine idea, Gareth, I have often thought that it was time that most companies admitted that people without net access were holding back the inevitable development path of said companies. However, while this system works for large companies, with an actual workforce, I wonder how it’s going to work for you. Fast forward a year (yes, I’m trying to be optimistic) and assume that SoW is released, sales are good (for an Indi) and you are working on your next game (while still holding down your day job); do you mean to tell me that you will have the time to add further, and consistent, SoW development into your schedule? As it stands now, it almost seems like you need 8 more hours every day, just to chase your existing goals. What am I missing here?

March 1st, 2009 at 8:16 pm
GarethF
 4 

Hi Kimari.

Before you shout expletives at me, let me take a moment to set you straight, because you seem to have gotten the wrong impression. You seem to think I’m American, yes? I’m not. I live in South Africa. If a $60 game costs you 220 pesos then the dollar-peso exchange rate is around 1:3.6, yes?

The dollar-rand exchange rate is 1:10. A $60 dollar game costs us R600. Console games are R600-R800.

For reference, so you can see what R600 means, a movie ticket costs R45, or R20 if I go on half-price Tuesday. Which is $2-$4. So please don’t think I am just being unsympathetic to your countries plight, in fact it’s the same or worse here in SA.

That being said, everyone I know, every single person who is computer literate, is a pirate or has been in the past, myself included. Even if they can afford otherwise. They all have differing abilities to buy their games, but let us be clear, everyone pirates even if they could afford to buy. It’s simply the fact that :

1) It’s easy.
2) It’s economically advantageous. You can play that game and still spend the money on something else too.

The reason people pirate in your country isn’t because they can’t afford it. It’s because they can. If “because we can’t afford it” was an acceptable justification, people would simple steal Porches. It’s because we can get away with it, that’s all. It annoys me when people aren’t honest enough to at least admit that much. If people could photocopy Porches everyone would be driving one.

This statement is telling :

“Nobody even thinks of buying the original anymore because we all know that nobody can pay it, and if someone does then he/she is stupid.

The second part is the significant one. If no-one could afford it, there would be no need for the qualifier. The reality is that some people can, but the standard economic mechanisms are simply being circumvented because it’s an electronic good and can be copied easily and without punishment. It’s the same here. That’s the only real difference between games and any other expensive good that is beyond your budget, yes, they fact that you have another avenue to acquire it?

“We’ve been in this state since 2001″

We’ve been in this state since I was old enough to remember.

“Everybody pirates, it’s part of our culture now.”

Same here. But it only works because some other part of the world is paying enough to support the creators. If everyone pirates, not simply Argentina, then there is no reason for the creative types to make these products that they cannot benefit from and no more will get made. That’s the core problem with piracy. It bites the hand that feeds. If everyone does it, no one will be able to because the source of the product will dry up. It is an unsustainable model.

“Granted, there are some decent people left who buy the originals whenever they enjoy the game, but they still pirate.”

Yeah, but this relies on people being White Knights. The majority aren’t. If people got to decide on whether to pay for a movie only after they saw the movie, the cinemas would go under from lack of profit. The desire to pay for entertainment drops way down after you’ve already received that entertainment.

“We are a lost market to the gaming world but somehow our downloads are considered as lost sales. Give me a break.”

Give me a break too. No one forces you to pirate, or me. If we do, it’s because we at least wanted to try the product and we didn’t want to pay. It’s the same as watching a movie, or going to a restaurant. If you didn’t like the movie or didn’t like the food, you don’t get your money back in those cases. Most people can understand why that would be a foolhardy business model. The only difference with electronic entertainment is that people can get away with it, so they do.

March 1st, 2009 at 8:27 pm
GarethF
 5 

A fine idea, Gareth, I have often thought that it was time that most companies admitted that people without net access were holding back the inevitable development path of said companies.

Well, it’s not that I don’t want to support the net-restricted. For the a few dollars and the cost of shipping I’d be willing to burn a CD with updates and ship it to people.

do you mean to tell me that you will have the time to add further, and consistent, SoW development into your schedule? As it stands now, it almost seems like you need 8 more hours every day, just to chase your existing goals. What am I missing here?

You’re missing how much easier it is to develop a mini-expansion when you already have all the art assets and a complete engine, as well as being the person who created that engine. At worst I can see a mini-expansion requiring a few new art assets on top of the scripting. If you read my post about project management you must have seen the part where I said that 75% of my time is going to making new art assets, yes? Seriously, it is whole orders of magnitude easier and less time consuming for me to simply write a new adventure and do some scripting/area layout than it is to make a new game, with all that entails.

And if it saw a sales spike like Valves, well, ,who knows. Perhaps I could hire someone to do that art. Or perhaps I could turn this into a full time job sooner than anticipated. ;)

March 1st, 2009 at 8:44 pm
 6 

“You seem to think I’m American, yes?”

Nope, I know you live in south africa… at least that’s what I remember. Apparently I remembered correctly =)

“Everyone pirates even if they could afford to buy.”

People have priorities. Maybe it’s a cultural thing. At least here it doesn’t seem like people pirate because they don’t want to pay anything, they pirate because it’s practically the only option available.
Hell, they wouldn’t go to the store and BUY a pirated game (15 pesos most of the time, depending on the platform), they would download it and pay 1.5 pesos for the blank dvd, or nothing and just use daemon tools.
Oh, and about the exchange rate: Yes, it’s 3.6. A month ago it was 3.5. The most optimistic forecasts say that it will be 4:1 by november and 7:1 in the worst case scenario. But I didn’t mention this since it wasn’t relevant to my point.

“If “because we can’t afford it” was an acceptable justification, people would simple steal Porches.”

…. Let’s not equate piracy with stealing shall we? It isn’t, and you know it. It’s copyright infringement. It’s less morally reprehensible since “nothing is lost” and to top it all off, everybody does it and nobody get’s caught (at least here).

What I meant by “and if someone does then he/she is stupid.” was that piracy became the only option and buying the original was an enourmus waste of money to most, it became common-sense to pirate, it became ingrained in our culture.

“If people could photocopy Porches everyone would be driving one.”

That’s a no brainer, but games aren’t as expensive as porsches. So porsche piracy would be even worse.

“We’ve been in this state since I was old enough to remember.”

I meant “we” as the country. But I get your point. Piracy was always there, and it always will be.

“If everyone pirates, not simply Argentina, then there is no reason for the creative types to make these products that they cannot benefit from and no more will get made. That’s the core problem with piracy. It bites the hand that feeds. If everyone does it, no one will be able to because the source of the product will dry up. It is an unsustainable model.”

Ah, in this we agree. But my point seems to be lost amid the walls of text ^_^U
What I was trying to say is that our industry should try and find out where the most pirates come from. My guess is that 80% or more come from China, Latin America and Russia. We should probably take this into account when trying to calculate the lost customers to piracy, since none of these pirates would buy the product in the first place. There are som exceptions of course, but not in the game industry. For example, microsoft get’s the shaft because everybody needs XP but everybody here pirates it, so those ARE lost sales. The music industry does loose some sales since music CDs aren’t THAT expensive. Then again, even though people download music everyday they still buy albums and nobody says that it’s something stupid to do because they are inexpensive enough and the music industry has more cultural legitimacy than videogames. But I’m already going off-topic here.

Just to be sure you get what I’m saying, I’m not trying to give excuses or justify the existence of piracy. It’s a fact, it happens, it has it’s causes that make it worse and it has it’s antidotes that make it more scarce. But it will always be there. Making very broad statements about how people are jerks doesn’t help your cause. Some of them are, some of them aren’t, and there’s no way we can measure it in any accurate way, so let’s stick to the methods on solving it shall we? Being pessimistic about humanity doesn’t help you.

“No one forces you to pirate, or me. If we do, it’s because we at least wanted to try the product and we didn’t want to pay.”

Wanting is not enough, you have to have the money for it, and if you don’t have it, then that’s a lost sale? If the guy then pirates it, how is that hurting YOU?
You’ve seen the effect that price-drops have on sales, it’s exponential. Lower from 60 to 50 dollars and you see a (say) 10% increase in sales, lower to 40 and then the sales go up 40%. Sell it at 30 and then the demand expands to 120%. There are a lot more factors than price, but when it is prohibitively high, then it’s the only thing that matters, a marketing campaign or word of mouth here would be wasted resources, it’s not enough if they can’t lower the price by half, and even then it’s still too expensive.

The matter of the fact is, if someone, anyone, wanted to succeed here, they’d need to sell games for “dirt” cheap (between 5 to 35 pesos) and with forms of payment other than paypal/credit card. That’s it. That’s why cell phone games are booming here, they are cheap and you pay for them in your phone bill. Most of them are GARBAGE, but people still buy them by the bucketloads. And it’s not because of the “expanded audience” of the casual games we hear so much about, everybody here pirates in one way or another, but if the product is inexpensive enough they might as well buy the original, everybody knows that the original is better. Even if there’s no actual difference.

March 1st, 2009 at 10:01 pm
GarethF
 7 

People have priorities. Maybe it’s a cultural thing.

No, it isn’t a cultural thing. People value “having the game + keeping their money” over “having the game + not having their money”, universally. Like I said, most people aren’t White Knights and will do what gets them the most advantage, so long as it fits their moral framework. The problem is that people have convinced themselves piracy is a minor thing, so it’s no problem to do it. The human mind has a wonderful ability to convince itself that the most beneficial path is also the right one.

they pirate because it’s practically the only option available.

You mean it’s the only option if they want to play the game without paying. Not playing the game is always an option, like not owning a Porche is. The difference is mainly one of enforcement.

Oh, and about the exchange rate: Yes, it’s 3.6. A month ago it was 3.5. The most optimistic forecasts say that it will be 4:1 by november and 7:1 in the worst case scenario.

My point was here in SA it’s quite a lot worse already (10:1), so I know exactly the type of mindset you’re talking about and don’t buy it at all. People don’t have the right to own something just because it exists.

Let’s not equate piracy with stealing shall we? It isn’t, and you know it. It’s copyright infringement. It’s less morally reprehensible since “nothing is lost” and to top it all off, everybody does it and nobody get’s caught (at least here).

Let’s not get to that tired argument shall we? It’s the modern age, property rights have been extended to include “intellectual property”, theft has been extended to include “intellectual property theft”. Information is a commodity, taking information you don’t have a right to is theft. Saying “no one is hurt cause nothing is lost” is silly, you’ve taken the right of another person to profit from their ideas, which is harmful to the people who generate ideas. When you put a piece of software on a torrent with 20 thousand other users you aren’t simply “sharing”, you’re mass-producing a good.

The only part that really matters is the “won’t get caught and punished” part.

What I meant by “and if someone does then he/she is stupid.” was that piracy became the only option and buying the original was an enourmus waste of money to most, it became common-sense to pirate, it became ingrained in our culture.

Free market economics determines what is an enormous waste of time and helps to counter it by creating price pressue. Piracy doesn’t help because it circumvents a natural mechanism which would result in downwards price pressure. It’s self-fulfilling.

What I was trying to say is that our industry should try and find out where the most pirates come from. My guess is that 80% or more come from China, Latin America and Russia.

Let me state again, even though SA has twice the shitty exchange rate of your own country, every person I know who could afford otherwise still pirates. Blaming it on “well, they just can’t afford it” is bull, every IT person I know (and I know a lot) proves otherwise. It’s not that we don’t have the money to spend, it’s that it is easy, convenient and beneficial not to. And we won’t get punished. That’s really the heart of the matter.

Making very broad statements about how people are jerks doesn’t help your cause.

Meh, I have no cause. Anyone who would pirate my products will do so because they can and it’s economically beneficial, regardless of what I write. I have no illusions. The ways to counter it are either via some enforcement technique or to offer something for sale which cannot easily be replicated via piracy.

Wanting is not enough, you have to have the money for it, and if you don’t have it, then that’s a lost sale

Convince me that Argentinians cannot afford it. At a 10:1 exchange rate, I know plenty of SA people who pirate even though they could afford otherwise. They are lost sales.

u’ve seen the effect that price-drops have on sales

Temporary price drops, temporary sales increases. I don’t know that it would apply if the price was permanently 50%, people buy more when they think they are getting a special offer or sale. If that was the price from the start it may not have that effect.

As an aside, think for a second about what you are saying here mate. I don’t want to be harsh but really, think about it. If you say you cannot afford games then I don’t know how you will afford SoW. I aim to price it at $25, which is $5-$10 dollars below standard mainstream PC titles. Are you telling me that you cannot afford SoW but will simply pirate it because you want it? Do you think my price too high? Do you consider it “stupid” to pay full price for SoW? Am I being unfair to people in your part of the world?

I’m sorry, it’s worse here than in Latin America and I still just don’t buy it.

March 1st, 2009 at 10:57 pm
 8 

“You mean it’s the only option if they want to play the game without paying. ”

No, it’s really the only option.
The only original PS2 games I’ve ever seen IN MY LIFE are from people that bought them outside of the country or imported them at a very high cost (i.e. White Knights).

“Convince me that Argentinians cannot afford it. At a 10:1 exchange rate, I know plenty of SA people who pirate even though they could afford otherwise. They are lost sales.”

I don’t remember exactly now, but we are one of the countries with the most unequitative spread of wealth (African countries made the list obviously, but I don’t remember if South Africa did). There are people that are extremely poor and people that are extremely rich, but there’s almost nobody in the middle. The middle class was squashed like a bug in a windshield.
Oh, and did I mention that we live in permanent economic crysis? No? Oh, it’s really fun. We are one of the most prosper economies in the world for a few years, then we crash and burn and repeat the process until people get sick, go on protests and cause yet another economic crysis. Then the goverment dusts itself up and continues to do the exact same thing.
We went through 5 presidents in a week in 2001 if I remember correctly, and we are heading for another crysis at brake neck speed (oh but the worldwide economic crysis is not the main cause, it’s our ignorant, overpowered and with an inferiority complex ex-president. That’s right, ex-president, the guy’s wife is the actual president but all she’s good at is idiotic cringe-worthy speeches, which she gives out to the ignorant masses twice a week… yay!).

“If you say you cannot afford games then I don’t know how you will afford SoW.”

I never said I’ll buy it, but I’ll probably will since I like your game design thoughts. I think I never said that I can’t afford a few videogames here and there, I consider myself very lucky. Otherwise I wouldn’t be here, writting in english.
I know what the consequences for piracy are. All I’m saying is that people pirate because games are too expensive here, so as a norm, few people can actually afford it. Hell, it’s already too expensive at 60 dollars for Americans.
And no, you are not being unfair to us. It’s not your fault that our exchange rate sucks. Just don’t expect much sales from Latin America, Russia and China, that’s all. And if you are going to keep statistics, somehow, please have this in mind.

To everything else you said:
I try to avoid saying “you” statements since it’s always detrimental to the discussion, so forgive me for this one:
You generalize too much. You put every single pirate inside the big bag of jerks and don’t even admit that there are shades of gray in this whole issue.

Paraphrasing: “The only reason people pirate is because people are jerks and want everything free.”
That’s a really grim way to look at the world.
One has to wonder why people still buy software. One has to wonder why there aren’t rampant wars going all the time if the human being is such a filthy filthy creature.

March 1st, 2009 at 11:42 pm
Kris
 9 

“when you already have all the art assets”

Aren’t new art assets most of the excitement of new content? Perhaps I am, again, missing the point. If the D2 expansion just had two new char classes, and no new zones, I very much doubt that I would have purchased it. Now, I know that you are talking about free added content, but the concept is the same.

And, I really didn’t want to touch this argument, especially to just add my idealistic drivel, but: “The ways to counter it are either via some enforcement technique or to offer something for sale which cannot easily be replicated via piracy.”

Call me naive, but I also think that your blog, your interactions, interviews, and anything you can do to humanize yourself, prevents people from pirating your work. Knowing someone always helps chip away the rationalizations needed to steal from them, (at least guilt free).

March 1st, 2009 at 11:58 pm
 10 

“Call me naive, but I also think that your blog, your interactions, interviews, and anything you can do to humanize yourself, prevents people from pirating your work. Knowing someone always helps chip away the rationalizations needed to steal from them, (at least guilt free).”

Completely agree. Although I have to question how many people can you transform from pirate to legitimate user by doing this. Guess it depends on the traffic of the blog.

March 2nd, 2009 at 12:00 am
jack
 11 

“Intellectual property” should be separated from physical property because you cannot guarantee what you are paying for.

If I research a car, with advertised features/quality, I know what I should be getting, and if the features/quality aren’t in the car, then I don’t have to buy it.

With a game, you are marketed features/quality that are not always in the game, or implemented properly and you can not test them until you pay for the product.

It’s not as simple as saying if you don’t like it, then don’t buy it, because some game developers promise certain features/quality which you cannot see until you buy the game.

It would be like having to buy a car without being able to verify the features/quality you were promised, only to find out they are missing once you purchase the car.

March 2nd, 2009 at 4:48 am
GarethF
 12 

@ Kimari :

The only original PS2 games I’ve ever seen IN MY LIFE are from people that bought them outside of the country or imported them at a very high cost

But which came first, the chicken or the egg? Did piracy arise because no PS2 games existed in your country, or do no PS2 games exist in your country because it’s impossible to make a profit given the excessively high piracy rate?

You say cellphone games are flourishing in your country? Well, wait till the pirates figure out how to distribute them easily. Cause cheap they may be, but nothing is cheaper than 0.

I never said I’ll buy it, but I’ll probably will since I like your game design thoughts.

I appreciate the sentiment, thanks. :) The problem with relying on this kind of concept to generate income though is what happens when a person has a bad month, or the economy is tight? Normally, a person then has to weigh the value of each good they want to buy and determine whether he wants it over something else of similar value (should I buy those new shoes, or go to that fancy restaurant? I can only afford one this month…). The problem with software is it can easily be replicated for free. So the person maximizes their personal benefit by paying for the good that he cannot get easily for free, and pirating the software. (I can get the new shoes AND free movies/music/games, yay!)

Because software is easily copied it ends up being the thing the consumer chooses not to pay for in that case. It’s not that people are jerks, it’s that most people are simply trying to maximize the benefit they receive from their income, and they can’t see any direct consequences for their actions. It’s not evil, it’s plain old self-interest.

All I’m saying is that people pirate because games are too expensive here

Are you saying that they literally couldn’t afford a single game if it wasn’t for pirated copies, or that they simply could afford fewer games? Cause here in SA it’s the latter. You said a $10 dollar game costs the price of two movies? Can people not afford to watch movies twice in a month? If piracy didn’t exist, maybe those platinum edition games would flourish in your country, you know the ones which are a year or two old but a fraction of the price? That could become a valid business model for producers in poorer parts of the world. But piracy prevents the economic mechanisms from working properly. It gives nothing back to the creators at all.

I try to avoid saying “you” statements since it’s always detrimental to the discussion, so forgive me for this one:

Forgive me if I seem to be picking on you as well ;)

You generalize too much. You put every single pirate inside the big bag of jerks and don’t even admit that there are shades of gray in this whole issue.

Lol, every single person I call a friend is a pirate, and I don’t consider them jerks Kimari. But piracy is, in my opinion, simply a matter of convenience, lack of enforcement and self interest. Games are luxury goods, we don’t need them to live. There are plenty of other ways to be entertained, many of them free. If we can’t afford them, we don’t thus gain the right to acquire them anyway just because they are expensive, not so? We do it because we want it and we don’t want to pay the asking price and there is no consequence for doing it except that we get to keep our money. I get annoyed with all the justification that flies around the net where people point the finger of blame for piracy at someone else. It’s the producers fault for charging too much, or DRM, or something else. If people just own up and say “I do it because I want to” I respect them far more.

Paraphrasing: “The only reason people pirate is because people are jerks and want everything free.”
That’s a really grim way to look at the world.

Call it healthy skepticism. ;) You seem to be taking this a bit personally. I’m not saying people are jerks. But, look at it this way. If someone is selling hotdogs and right next to them someone else is giving away free hotdogs, what do you think most people will do? What will happen to the guy selling the hotdogs, with his product on offer for free right there next to him? Would the fact that he is going to be unable to support his family affect people’s choice to go for a free hotdog?

One has to wonder why people still buy software.

Do they buy software in your country? You’re coming across like I’m being unfair, but you yourself said piracy is completely rampant in your country. If everyone’s standard of living jumped to triple what it currently is, would piracy magically evaporate and everyone start buying software again? I doubt it. Hard to beat “free” for value for money eh?

@ Kris :

Aren’t new art assets most of the excitement of new content? Perhaps I am, again, missing the point. If the D2 expansion just had two new char classes, and no new zones, I very much doubt that I would have purchased it. Now, I know that you are talking about free added content, but the concept is the same.

I think you are thinking about a full-blown expansion rather than a module. Think the NWN modules people created, but more professional. Essentially a new adventure or scenario re-using assets. You aren’t asking people to pay for something extra, you are simply adding value to the original product. You’re saying “buy the original and it comes with 3 extra adventures…wait, 4 extra adventures…wait, 5 extra adventures…” etc.

Call me naive, but I also think that your blog, your interactions, interviews, and anything you can do to humanize yourself, prevents people from pirating your work.

I don’t think you naive. :) But I already covered that with this : “offer something for sale which cannot easily be replicated via piracy.””. Community interaction and personal involvement aren’t easy to replicate by piracy and add “personal value” to a product for a customer. I do it because I enjoy it, but luckily it’s also good for business. ;)

Although I have to question how many people can you transform from pirate to legitimate user by doing this.

I don’t believe that people are either pirates or legit users. I think people just make rational decisions based on the most benefit to themselves. Remember, intangibles still count as personal benefit. Supporting a cause or person you believe in provides warm fuzzies.

@ Jack :

“Intellectual property” should be separated from physical property because you cannot guarantee what you are paying for.

Not so. You cannot guarantee what you are paying for with physical property either. Many, many people find out about problems with the new car, electronic device or property they’ve bought only after paying. You can read reviews and compare customer opinions etc, but the same statement applies to software and physical property. If you’re saying that software should always have demos, I competely agree. I’ve been burned before buying games which didn’t have a demo.

Hoo boy but this is too long a comment.

March 2nd, 2009 at 10:21 am
 13 

“You say cellphone games are flourishing in your country? Well, wait till the pirates figure out how to distribute them easily. Cause cheap they may be, but nothing is cheaper than 0.”

Actually, some of my friends already pirate some of them, but at the same time, they also buy some of them. They are inexpensive enough that it becomes a matter of convenience more than a matter of money.

“Do they buy software in your country? You’re coming across like I’m being unfair, but you yourself said piracy is completely rampant in your country. If everyone’s standard of living jumped to triple what it currently is, would piracy magically evaporate and everyone start buying software again? I doubt it. Hard to beat “free” for value for money eh?”

Yes, they buy software. There are still stores with not-so-recent games and just plainly old games that you can buy, and people do! They wouldn’t still be here if they didn’t.
Even some of the stores that sell pirated goods have a few originals. Granted, they don’t sell much of them, so they don’t carry many titles, but they do, because there’s still some people that buy them.

I already said that piracy will never fade away, especially in a country which now has it as a main cultural characteristic. We all pirate, we know how to do it, and we don’t feel sorry about it. We see nothing wrong with it (I say all of this not including me, I mean “we” as a society).
You can never beat zero in price, but that’s not to say that you can offer a better product than a pirated copy, and you said it yourself. I’m not going to say all pirates, but a part of them are plausible consumers, they are part of your audience and are willing to do “the right thing” in certain ocassions. Sometimes all it takes is a lower price, sometimes all it takes is not shafting them with intrusive DRM, etc.
People have shades of gray, people pirate for different reasons, not just money.

March 2nd, 2009 at 5:32 pm
Kris
 14 

“I’m not saying people are jerks.”

I am. People are jerks. I’m a jerk. It comes with being a “people”. I try not to be such a jerk in areas where it bothers me, and accept that I’m a jerk in areas that it does not. Stealing your game would make me feel like a jerk; making copies of Sacred 2 and giving them to everyone in the world that I dislike- would not. I would say that people are complex this way, but, in truth, we’re most likely not complex enough :P Most people just need to get over themselves. But, I digress.

March 2nd, 2009 at 9:39 pm
Jay
 15 

Interesting discussion. I’m in the “people pirate because it is a great deal and you won’t get caught” camp.

Here in Canada a $60 game is a mere 4-6 movie tickets compared to your 14 in Argentina and South Africa. I _still_ pirate most games. Like Gareth says, getting the product and keeping your cash is *always* a good deal, no matter how cheap the product is.

I do try to White Knight a fair bit as well, however. I acknowledge that piracy has very real consequences for developers and producers, and I don’t believe that theft from bug companies is “noble” in any form.

As to the topic at hand — I agree that “strategy two” for curtailing piracy is viable. A choice between a lesser product/experience for free or a superior product/experience for some money at least gives the consumer a choice to make!

March 3rd, 2009 at 2:45 am
 16 

I wanna be a real jerk
like no one ever was
to torrent them is my real test
to bankrupt devs is my call

I will travel across the web
Googling far and wide
Each developer to understand
that I don’t want to go outside.

Videogames! Gotta down ‘em all
If you ask me, they have no destiny
Videogames,
Oh, you know there’s no end,
In a world we must offend,
Videogames, gotta down ‘em all,
A heart so rude
Our diplomacy will pull us through,

You supply me, and I’ll moon you,
Videogames,
Gotta down ‘em all,
Gotta down ‘em all, Videogames.

(I think I’m going to make a post out of this song xD)

March 3rd, 2009 at 3:02 am
GarethF
 17 

Lol!

Maybe I should include it as an easter egg in SoW!

March 3rd, 2009 at 11:59 am
John
 18 

Interesting post. However, entertainment as a service is just a fancy way of saying that developers/publishers want to milk more money out of the customers.
Yes, i do understand that making games is a business and making money is what it comes down to.
But speaking from a customer and not developer point of view, when I buy a game, I would like to receive a full product, not just the basics that will be upgraded and filled in later. I’d like that all the content that I expect to find in the game will actually be in the game. I might be a minority, but when I buy a game, I’d much rather own a product than a service, thankyouverymuch.

March 3rd, 2009 at 12:31 pm
Collywobbles
 19 

John, I think what Gareth is suggesting is additional content after the full game is released. Not the Bethesda model of charging for something that should have been in anyway.
In fact, from what I’ve read the content would be free to customers who paid for the game, the service would be his way of giving to the community not draining it. Think official mods, not horse armor. You are definitely not in the minority on that view.

March 3rd, 2009 at 1:40 pm
GarethF
 20 

What Collywobbles said. SoW will be released complete, no paying for content that should have been in the game.

The updates will be similar to NWN premiums modules, standalone adventures. All released fro free, so certainly not to milk anyone. The idea is simply to make it more attractive to own the original game by adding further content for those who bought the original to enjoy at regular intervals.

Imagine you bought a novel, and doing so gave you access to sign up to the author’s newsletter. And every few months, that author sent out a short story he’d written to everyone on the newsletter mailing list. Essentially the same idea.

March 3rd, 2009 at 3:03 pm
 21 

“Maybe I should include it as an easter egg in SoW!”

Hahaha, that would be awesome!

March 4th, 2009 at 5:39 am

One Trackback/Ping

  1. Another view on piracy « Indigo Static    Mar 04 2009 / 6am:

    [...] discussing about piracy with Gareth in the comments’ section of one of his posts, I just wanted to liven up the atmosphere a little. With tongue firmly planted in cheek, I [...]

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