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"Piracy - the facts and figures."

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Mon 10/06/02 at 22:26
Regular
Posts: 787
Just seen this over at PlanetXbox.com but it applies to software on ALL platforms, not just Xboz (obviously):

Piracy, no matter what the context, has always been a hot topic and this morning it seems piracy is on the rise. In a recent report from the Business Software Alliance (BSA), an organization that promotes a safe and legal online world, piracy has risen two years in a row. Once by 37 percent in 2000 and again by 40 percent in 2001 with piracy in North American piracy at 26 percent, a one percent increase over 2000. The report went on to state that that while piracy in North America is lower than any other region of the world it attributes to the third highest loss for the industry with $1.9 billion lost in 2001 and $2.9 billion in 2000.
Highest Piracy Rates For 2000/2001


Vietnam: 2000 = 97% - 2001 = 94%
China: 2000 = 94% - 2001 = 92%
Indonesia: 2000 = 89% - 2001 = 88%
Ukraine / Other CIS: 2000 = 89% 2001 = 87%
Russia: 2000 = 88% 2001 = 87%
Pakistan: 2000 = 83% 2001 = 83%
Lebanon: 2000 = 83% 2001 = 79%
Qatar: 2000 = 81% 2001 = 78%
Nicaragua: 2000 = 78% 2001 = 78%
Bolivia: 2000 = 81% 2001 = 77%

The report concluded with a bittersweet ending as it was said while piracy in 2001 was only $10.97 billion, as opposed to $11.75 billion in 2000, the reason has been partially attributed to the effects of worldwide economic slowdown and lower software prices. Furthermore, during 2001, North America, Asia/Pacific and Western Europe accounted for 85% of all revenue lost due to piracy.
- - - - - - - - - - - - - - - - -

Thats a bloody lot of money. No wonder software prices are so high if they have to recoup those kinds of figures.

Pirates suck. And not the ones with an eye patch and a parrot on their shoulder...
Mon 10/06/02 at 22:26
Regular
Posts: 14,117
Just seen this over at PlanetXbox.com but it applies to software on ALL platforms, not just Xboz (obviously):

Piracy, no matter what the context, has always been a hot topic and this morning it seems piracy is on the rise. In a recent report from the Business Software Alliance (BSA), an organization that promotes a safe and legal online world, piracy has risen two years in a row. Once by 37 percent in 2000 and again by 40 percent in 2001 with piracy in North American piracy at 26 percent, a one percent increase over 2000. The report went on to state that that while piracy in North America is lower than any other region of the world it attributes to the third highest loss for the industry with $1.9 billion lost in 2001 and $2.9 billion in 2000.
Highest Piracy Rates For 2000/2001


Vietnam: 2000 = 97% - 2001 = 94%
China: 2000 = 94% - 2001 = 92%
Indonesia: 2000 = 89% - 2001 = 88%
Ukraine / Other CIS: 2000 = 89% 2001 = 87%
Russia: 2000 = 88% 2001 = 87%
Pakistan: 2000 = 83% 2001 = 83%
Lebanon: 2000 = 83% 2001 = 79%
Qatar: 2000 = 81% 2001 = 78%
Nicaragua: 2000 = 78% 2001 = 78%
Bolivia: 2000 = 81% 2001 = 77%

The report concluded with a bittersweet ending as it was said while piracy in 2001 was only $10.97 billion, as opposed to $11.75 billion in 2000, the reason has been partially attributed to the effects of worldwide economic slowdown and lower software prices. Furthermore, during 2001, North America, Asia/Pacific and Western Europe accounted for 85% of all revenue lost due to piracy.
- - - - - - - - - - - - - - - - -

Thats a bloody lot of money. No wonder software prices are so high if they have to recoup those kinds of figures.

Pirates suck. And not the ones with an eye patch and a parrot on their shoulder...
Tue 11/06/02 at 10:26
Regular
"Party like its 2005"
Posts: 452
I agree that piracy sucks, but you stumbled on a key fact that you didn't fully explore....

The amount of money lost through software piracy came down last year because of lower software prices.

You see this point? Many people in those countries you mentioned don't have 2 beans to rub together. North America though, that's another story. Piracy here equates to greed, not lack of affordability.

The fact that piracy comes down with prices suggests that more people would avoid flirting with the law if they had the choice. It's greed that's the problem - when people have good income, but still persue free games. This is what's on the increase in North America.

Anyway, your report comes from the Business Software people - not games, and it's with business software where the biggest rip-offs lie.

To be honest it's goint to be hard enough for locals in Vietnam to start up a business, without having to pay Gates over £1000 for VB, Windows etc. When they can't afford clothes.

But then pricing in the Western world doesn't often help over here. e.g. Gameboy games (Super Mario, Final Fight etc.) costing more than £25, when they are SNES reproductions. You can't tell me that truely reflects the development costs of a game that made millions over ten years ago???

How can Nintendo get away with this? The way to get rid of piracy is to come up with innitiatives like the 'Platinum' range, and by releasing amazing games like FF6 for £9.99! Who's going to bother pirating when you can get originals, complete with manuals for less than a tenner? You will get a fiver for them when trading in anyway!

Correct pricing will reduce piracy, not eradicate it, as it will always exist because of greed.
Tue 11/06/02 at 10:30
Regular
Posts: 14,117
Hmmm, I see your point, but the amount lost to piracy is because of the drop on price, but perhaps not becuase of the drop in numbers of copied programs.

For example, if a program costs, say, £50, and 1000 copies are made, the industry has lost £50,000.

However, if the price of the software comes down to £45, and 1000 copies are made, the industry has lost £45,000.

LEss financial loss to the industry, but the same number of copies made, therefore piracy has not really been reduced.
Tue 11/06/02 at 10:39
Regular
"Party like its 2005"
Posts: 452
Yeah, good point there.
But by reducing the price to £45 from £50, should mean that they sell more than the 1000 copies they sold when it was £5 more expensive...
Getting a bit complex now :)
I never trust these figures though - especially on a website that has anything to do with Microsoft.
Tue 11/06/02 at 10:41
Regular
Posts: 14,117
PlanetXbox is an independant site, it's part of the GameSpy Network I think...
Tue 11/06/02 at 14:58
Regular
"relocated"
Posts: 2,833
The problem with these sorts of figures is that they just don't add up. Suppose someone goes looking for a pirated version of Photoshop (retail cost ~£500). If they find it then they spend a couple of quid on a knock-off copy: the industry adds £500 to its piracy figures. But what if Photoshop isn't available from their friendly local pirate? Do they nip down to PC World to get the retail version? Doubtful.

In fact only corporations are capable of spending this much on a piece of software: and in today's economy it is only western corporations that are able to do so. Home piracy of these types of program does very little harm - because few have the money to buy the originals. And as far as I'm concerned expecting impoverished countries to line the pockets of MS etc, just to develop their economies is just unreasonable.

Open source - the way to go.
Tue 11/06/02 at 15:15
Regular
"---SOULJACKER---"
Posts: 5,448
YH, I have to disagree games being expensive because of piracy. Firstly, MOST of the profits from games goes to the retailer. Last year retailers saw huge profits increases, whilst many publishers lost money.

The fact is that the industry can almost totally get rid of piracy in the west (which is where your report says most money is lost)...

1) Remove all regional lock outs. This means that chips cannot be sold under the facade of allowing importing, and will accordingly become illegal as their sole purpose would be to play copied games. Remember, chip makers are actually reputable companies who will shut down if chips did become illegal in this way. So there would be no chips with which people could play copied games! The only way for piracy now would be to find a person making chips themselves, illegally in some backstreet. I doubt many gamers would do that!

The following points are about reducing people's wish to pirate in the first place:

2) With the loss of regional lockouts, retialers in the UK will be directly competing with those in America. So prices will be forced to drop. It also means that Europe will get games quicker.

3) Develop games in all languages FROM THE START! Rather than waste months translating stuff, why not develop games will full language support right from the start. This means no more waiting for games, and we will have universal release dates. Not only that, but games development costs will be cheaper from the outset. (Taking into account the amount publishers take for translating games)

4) STOP poor games from being developed from the start! Why do publishers allow really terrible games (esp those based on licences like the Simpsons) to get released? They should kill off such games as early as possible. This will increase the quality of what we see on the shelves and increase confidence in the industry.


Sonic
Tue 11/06/02 at 15:17
Regular
"---SOULJACKER---"
Posts: 5,448
unknown kernel wrote:
" But what if Photoshop isn't available from their friendly local pirate? Do they nip down to PC World to get the retail version? Doubtful."

Despite having completely disagreed with YH's argument, piracy figures do add up. In Edge a while back why calculated the money lost to piracy was many, many billions of pounds, taking into account that ONLY 1 out of 3 pirated games would be bought otherwise. Even if it's only 1 in 10, it's still a massive figure.

Sonic
Tue 11/06/02 at 16:26
Regular
Posts: 14,117
===SONICRAV---> wrote:
> 1) Remove all regional lock outs.

I agree with that completely.

> The following points are about reducing people's wish to pirate in the
> first place:
>
> 2) With the loss of regional lockouts, retialers in the UK will be
> directly competing with those in America. So prices will be forced to
> drop. It also means that Europe will get games quicker.


Ah but would we get games quicker? Also, how much cheaper would it actually be to buy a game from the US? By the time you've added postage etc on, it may be about the same price to walk to your local shop. Damn sight quicker too....

> 3) Develop games in all languages FROM THE START! Rather than waste
> months translating stuff, why not develop games will full language
> support right from the start. This means no more waiting for games,
> and we will have universal release dates. Not only that, but games
> development costs will be cheaper from the outset. (Taking into
> account the amount publishers take for translating games)


Never going to happen. Ever. It seems a good idea, but the fact is that some territories are more important to developers than others. Which is why a Jap version of a Jap developed game is released first.

Also, I don't think is would speed releases up much. You may not have to add 9 months on the end to translate the game, but it will be going on as the game is developed, so the development will be slower, so Japan would get the game later, which they don't want. See above.


> 4) STOP poor games from being developed from the start! Why do
> publishers allow really terrible games (esp those based on licences
> like the Simpsons) to get released? They should kill off such games as
> early as possible. This will increase the quality of what we see on
> the shelves and increase confidence in the industry.

Agreed, but there's one thing stopping this: Bandwagon.

You mention yourself a Simpsons game, and the fact is that a Simpsons game will sell, no matter how bad it is, as it has the licence. Also, if no bad games ever came out, we'd have nothing to compare the good games to...
Tue 11/06/02 at 16:52
Regular
"¬_¬"
Posts: 3,110
In a um... 'report' I was doing (you'll see soon enough), I had to contact the ELSPA. All the piracy figures given are the retail value - one pirate game, to them, is worth £40. This means that the piracy issue isn't as expensive to the industry as you'd expect.

Just wanted to add that. :)

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