Valve's Gabe Newell On Piracy: It's Not a Pricing Problem [Slashdot]

[DP ServBot]

New submitter silentbrad writes with a followup to our discussion this morning about Ubisoft's claims of overwhelming game piracy. An article at IGN quotes a different point of view from Gabe Newell, CEO of Valve:"In general, we think there is a fundamental misconception about piracy. Piracy is almost always a service problem and not a pricing problem. For example, if a pirate offers a product anywhere in the world, 24 x 7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the U.S. release, and can only be purchased at a brick and mortar store, then the pirate's service is more valuable. Most DRM solutions diminish the value of the product by either directly restricting a customers use or by creating uncertainty."The quote was taken from an interview at The Cambridge Student Online, in which Newell speaks to a few other subjects, such as creating games for multiple platforms and e-sports.

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[crazyjackcsa]

I'm really getting frustrated regarding piracy, not so much from the pirates, but from the industry trying to deal with them and talking heads spouting off about it. I happen to agree with Valve here but that's beside my point.

Who is the biggest software company in the world? Nintendo. Who rarely (if ever) says anything about Piracy? Who's games hold pricing more than any other company? For that matter, who rarely says anything about used sales?

What is it that Nintendo is doing differently than everybody else?

There is always going to be a segment that is going to steal. No matter what you do, they will be there. The goal should be to reach out to the people "on the fence" and make sure the product is easy to get through legitimate means, isn't filled with ridiculous DRM, and is a strong value, no matter the price point.

[duffmanth]

I agree with this article to some extent, but I think the high price of games will continue to fuel piracy more than anything.

[Frankie_Says_Relax]

I'm really getting frustrated regarding piracy, not so much from the pirates, but from the industry trying to deal with them and talking heads spouting off about it. I happen to agree with Valve here but that's beside my point.

Who is the biggest software company in the world? Nintendo. Who rarely (if ever) says anything about Piracy? Who's games hold pricing more than any other company? For that matter, who rarely says anything about used sales?

What is it that Nintendo is doing differently than everybody else?

There is always going to be a segment that is going to steal. No matter what you do, they will be there. The goal should be to reach out to the people "on the fence" and make sure the product is easy to get through legitimate means, isn't filled with ridiculous DRM, and is a strong value, no matter the price point.

It's interesting that you bring up Nintendo.

I think that a large part of their key to profitability is to ensure the continued support of a consumer demographic that is completely ignorant and/or apathetic about piracy, because as most of us know, piracy on Wii and DS is particularly easy, even for the novice user.

Some would argue that historically speaking they have possibly been the largest victim of piracy both in hardware and software since the NES to the current gen.

In the portable and console generation that we're exiting Nintendo has been tremendously exploited by pirates.

I believe that in regions where the key consumer demographic is typically more ignorant of these practices Nintendo "keeping quiet" about piracy has actually served them well as a strategy in not raising awareness of what is available.

I don't doubt that they're completely aware of every estimated dollar that they've lost to pirates ... but they're just not interested in fighting it out in a very public fashion.

[Mayhem]

I think that a large part of their key to profitability is to ensure the continued support of a consumer demographic that is completely ignorant and/or apathetic about piracy, because as most of us know, piracy on Wii and DS is particularly easy, even for the novice user.

Oh, I don't know about completely ignorant... I've heard many tales of people finding soccer moms giving their kids a DS handheld with an R4 firmly embedded in the slot. Ignorant about piracy, maybe not, there's enough articles out there that people could read. Ignorant about just how easy it is on Nintendo's devices? Probably so, and maybe for the better.

[Griking]

Who is the biggest software company in the world? Nintendo. Who rarely (if ever) says anything about Piracy? Who's games hold pricing more than any other company? For that matter, who rarely says anything about used sales?

I may be wrong but wasn't it Nintendo that tried to stop used game sales years ago back when the NES and SNES were still somewhat current?

[RARusk]

It's interesting that you bring up Nintendo.

I think that a large part of their key to profitability is to ensure the continued support of a consumer demographic that is completely ignorant and/or apathetic about piracy, because as most of us know, piracy on Wii and DS is particularly easy, even for the novice user.

Some would argue that historically speaking they have possibly been the largest victim of piracy both in hardware and software since the NES to the current gen.

In the portable and console generation that we're exiting Nintendo has been tremendously exploited by pirates.

I believe that in regions where the key consumer demographic is typically more ignorant of these practices Nintendo "keeping quiet" about piracy has actually served them well as a strategy in not raising awareness of what is available.

I don't doubt that they're completely aware of every estimated dollar that they've lost to pirates ... but they're just not interested in fighting it out in a very public fashion.

Sounds a lot like "Security through Obscurity".

[kedawa]

Nintendo goes after ROM websites and flashcart manufacturers all the time, you just don't hear much about it because they'd rather not announce to the public just how easy it is to get Wii and DS games for free.

[WCP]

I've burned my share of games here and there, I'm not proud of it, but I'll admit to it. I have that Catholic guilt that I have to deal with. I feel like I'm just now getting past the bad karma I got for doing such things.

Anywho, nowadays Piracy just seems like a waste of time to me. Why pirate games when they sell for so cheap if you can just wait a bit? If you have a gaming PC, and are willing to play games that are 6 months old or longer, you can get the games for such cheap prices, that going thru the trouble of pirating them just seems kinda asinine. There are some truly amazing games that are available all the time for dirt cheap via places like Steam and Amazon downloads, and places like that.

If you're a console gamer, the downside is that the games don't fall fast enough in price, and you have to buy the used game, but I still think that buying a used game is better for the industry than piracy, because usually the person selling the game will take the money that the receive and throw it at a new game. Not always mind you, but enough where I think in a round about way it does actually help the industry. Also, you have the rental option which can work out well. I have the Blockbuster rental pass, and it allows me to try all the big new games out, for a bit, to see which games I'm really into, and which ones I should pass on.

PC is where it's at though. It's very difficult for me to pay more than $5 on ANY game, because I know that if I'm patient and wait for it, it will hit $5 eventually, never fail. Of course, I'm playing games from 2 years ago. When I was younger, I could never play games that weren't brand spanking new releases. I always had to have the latest and greatest. But nowadays, there are so many freaking games on my backlog list, that I'm perfectly content with being 2 years behind everybody else. I end up getting Game of the Year versions, with all the extra DLC content, and I get it for dirt cheap, plus the game has been out for two years, so it has plenty of patches, and is much more stable.

No need for piracy for anybody with a gaming PC and some patience.

[j_factor]

PC is the only platform where I've ever bought a game at retail and then pirated it instead of playing my legit copy. Why? Because it was less hassle. And we have Valve to thank, in part, for that environment. So while I kind of agree with what he's saying, his company isn't really walking the walk.