{"id":134,"date":"2009-05-07T09:11:30","date_gmt":"2009-05-07T16:11:30","guid":{"rendered":"http:\/\/www.designer-notes.com\/?p=134"},"modified":"2009-05-07T09:11:30","modified_gmt":"2009-05-07T16:11:30","slug":"the-case-for-piracy","status":"publish","type":"post","link":"https:\/\/www.designer-notes.com\/the-case-for-piracy\/","title":{"rendered":"The Case for Piracy"},"content":{"rendered":"<p>Ha-ha, just kidding. I&#8217;m not going to be arguing for piracy, but I do want to make one observation about how our industry is dealing with this issue. <a href=\"http:\/\/jeff-vogel.blogspot.com\/2009\/04\/more-evidence-of-overwhelming-piracy.html\">Some commentators<\/a> have been talking recently about the massive piracy afflicting the launch of <em>Demigod<\/em>. According to Stardock&#8217;s Brad Wardell, of the 140,000 connections to the main server during the game&#8217;s first week, <a href=\"http:\/\/kotaku.com\/5215528\/demigod-18000-customers-100000-pirates\/\">only 18,000<\/a> were by legitimate customers. This ratio compares favorably (or is that unfavorably?) with the <a href=\"http:\/\/www.joystiq.com\/2008\/11\/13\/world-of-goo-has-90-piracy-rate\/\">90% piracy rate<\/a> reported by the developers of <em>World of Goo<\/em>. I don&#8217;t want to comment on the viability of various DRM schemes, but &#8211; needless to say &#8211; unless a game is server-based (<em>WoW<\/em>,<em> EVE<\/em>, <em>EverQuest<\/em><em>)<\/em>, piracy is a bracing reality for game developers. However, I have an unscientific theory about the root of the problem:<\/p>\n<p><strong>For any given game, only around 10% of players are ever willing to purchase an original retail product.<\/strong><\/p>\n<p>Obviously, this proposition holds up for PC gaming, but I believe the same is true for console gaming (housemates sharing a copy, renting from Blockbuster over a weekend, friends loaning each other games, grabbing a cheap used copy from Gamestop) and even board games (one gamer buying a copy for a group of friends). This reality is immutable &#8211; if DRM was perfect, the percentage would go up somewhat, but it would never come anywhere near 100%. Too many games exist for consumers to afford even a small percentage of them, and &#8211; more importantly &#8211; players&#8217; individual interests in a specific game are always on a continuum. People on one extreme <a href=\"http:\/\/www.weplayciv.com\/\">found a website<\/a> about their favorite game while gamers on the other end might play it only once on a random Tuesday night at a friend&#8217;s house.<\/p>\n<p>The interesting thing about this percentage is that it mirrors another important percentage &#8211; the number of players willing to pay money on so-called free-to-play game usually hovers near 5-10%. (<em>RuneScape<\/em>, a F2P example on the higher-end, has reported figures <a href=\"http:\/\/www.developmag.com\/interviews\/200\/IP-profile-RuneScape\">around 12%<\/a>.) The important thing about the free-to-play movement is that the business model turns the theory I posited above into a founding principle. In fact, the smartest F2P games use a dual-currency system so that <a href=\"http:\/\/lsvp.wordpress.com\/2008\/02\/06\/using-dual-currency-systems-is-the-best-way-to-sell-virtual-goods\/\">the 5-10% cash-rich players can subsidize the time-rich ones<\/a>. Ultimately, this model works because a place exists for everyone on the continuum, from gamers who just want to dip a toe to ones willing to <a href=\"http:\/\/economicsofvirtualworlds.blogspot.com\/2008\/10\/rarest-of-lawyers.html\">drop thousands on microtransactions<\/a>. Launching a traditional retail game and hoping to change your &#8220;piracy conversion&#8221; rate is fighting the current; launching a free-to-play game built from the start with multiple levels of player commitment is sailing with the current.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ha-ha, just kidding. I&#8217;m not going to be arguing for piracy, but I do want to make one observation about how our industry is dealing with this issue. Some commentators have been talking recently about the massive piracy afflicting the &hellip; <a href=\"https:\/\/www.designer-notes.com\/the-case-for-piracy\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4],"tags":[],"class_list":["post-134","post","type-post","status-publish","format-standard","hentry","category-games"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p3EGlq-2a","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/posts\/134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/comments?post=134"}],"version-history":[{"count":0,"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/posts\/134\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/media?parent=134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/categories?post=134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.designer-notes.com\/wp-json\/wp\/v2\/tags?post=134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}