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UK game piracy "4:1 against legitimate sales"

Posted Jan 25, 2011 at 12:35PM EST by Karl B.

Listed in: PSP, Wii, PS3, MMORPG, Nintendo DS, Xbox 360, PC Gaming Tags: industry news, news, piracy, ukie
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1. UK game piracy "4:1 against legitimate sales"
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Ever since gamers started copying game cassettes back in the '80s, video game piracy has been a big torn in the side of the video game industry. The dawning of the Internet age has made it easier to acquire games through less than legitimate means, and now piracy is without a doubt rampant.

 

But just how rampant is it? According to a UK-based group, pirated games in the UK outstrip legitimately bought games by a four to one ratio. This is what Mike Rawlinson, the director general of publisher body UK Interactive Entertainment (UKIE) revealed in an interview with GamesIndustry.

 

piracy-1

 

Late last week, a BBC report said that around GB£ 1.45 billion was lost in sales to piracy in 2010 alone. In the same report, UKIE estimated that video game piracy led to around 1,000 jobs being lost as well.

 

Rawlinson made it clear, however, that the figure reported by BBC was merely a conservative estimate from UKIE and not actual direct losses to the British gaming industry.

 

"We took a conservative position of saying if this is only 1:1 across all titles it would have a retail equivalent value of GB£ 1.45 billion. We did not say this was the loss to industry," offered Rawlinson.




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Comments 


 
# RE: UK game piracy "4:1 against legitimate sales"Karl B. 2011-01-25 13:40
Yeah, piracy is pretty much here to stay I think.

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# RE: UK game piracy "4:1 against legitimate sales"TheReaper 2011-01-25 14:00
i think that ratio is just a tad exaggerated

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+1 # I agree.TPot 2011-01-26 19:14
Quoting TheReaper:
i think that ratio is just a tad exaggerated

He at least mentioned that a pirated game doesn't equate to a lost sale. I think they would find the lost sales are WAY below the number of pirate copies.

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+1 # RE: UK game piracy "4:1 against legitimate sales"Andy Mitchell 2011-01-25 14:09
Well there are ways to bring piracy down or even to make the profit margin loss lower. It's just a shame the corporations are too bloody blind to see the basics.

A) Make decent games and stop launching DLC on day one! DLC is meant to extend games, so it's really sickening to see expansion packs or even small items being released on day one. Stop trying to con the public and release it with the game, or a month or two down the line.

B) Stop charging so bloody much for games when we all know it doesn't cost anywhere near that much. If they reduced prices then more copies would sell, meaning less wasted copies sat on shelves. It would also mean the ratio of sales over pirated downloads would increase.

C) Stop wasting so much money on making new DRM techniques and on stupid lawsuits. Instead, use that money to further develop the games. We all know it's only a matter of time before any DRM is circumvented so it's a pointless waste of time and money. Plus, people that actually purchase products get screwed over more than pirates anyway as of course, pirates can generally bypass the DRM.

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+1 # I call BSferret7463 2011-01-25 14:11
This is such BS, from what i have seen the ratio is more like 1:5000. This is propaganda for when they make a crappy game that no one buys, they have something to blame it on. If they really want to fight piracy they need to lower the price of the games or media. I got into downloading roms back when they were selling the NES classics for the GBA each for $25!!!! I researched it a little, and i found my X-Rom. As far as i Know there is only one other guy in my area that is even trying to learn how to install CFW.

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# RE: UK game piracy "4:1 against legitimate sales"Zenshua91 2011-01-25 14:15
What the public obviously wants is more affordable games. Would you rather download a $50 game you don't know if you'll even like, or would you want to dish out the full amount and hate it? Not to mention do you even have the $50 to invest in such a cause? That's the big problem I've noticed everywhere, the prices for games and add-ons are too freakin high. Industry thinks raising the prices will help boost sales and profits to counteract piracy, when they're really adding fuel to the fire. Slash prices and you'll see sales. Don't toos just crappy Disney games in the 2-for-$10 bin, toss some older titles people like and they'll sell quickly! Hell, Fat Princess is a seriously short and arcade-like game and it's being sold DIGITALLY for $19.99. That game (though fun) should only be about %4.99 or maybe $7.99, $9.99 MAX!! Same thing goes for music. Why pay $1.19 a song when you can just download the whole CD/discography for free? CDs are expensive and 20-year old discs still sell for $15 a pop!! Dammit!!

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+2 # I agreeferret7463 2011-01-25 14:21
Why is digital just as much as the CD with the shipping and wrapping?

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# RE: I agreeZenshua91 2011-01-25 22:03
One word: Greed.

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+1 # RE: UK game piracy "4:1 against legitimate sales"heyzuescristo 2011-01-25 14:20
well software are expensive i mean all that comes to produce and advertise one game and how much profit its distributed u as a costumers of course if it means saving money will try to find ways to do so.
like in my country where the minimal wage is 300$ a month and a software is based on the dollar which is almost double the amount like 2:1 and a original copy would cost more then 120$ and on the US is around 60$ then a pirated game would almost be free or 4x less thus when u get paid so little of course u dot want to spend on original software since you can have the pirated one...

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# RE: UK game piracy "4:1 against legitimate sales"UltimaXX 2011-01-25 14:46
This is bullshit. Anyone who finished high school maths knows that this is just another example of statistics being abused and distorted towards an agenda. The actual figure might not be innaccurate, but it's presentation definitely is, its context; it doesn't talk about the number of pirates, which is more important if we want to see how it actually affects sales.

Scenario; a legitimate gamer might purchase ten games a year, while a pirate will happily download about fifty if we account for all games consoles they happen to own. For example's sake, let's say that these two gamers are the only ones in existance.

So even though, in this hypothetical scenario, that's a pirate to legitimate buyer ratio of 1:1 and a potential loss of about 50% (which is a reasonable estimate), the logic behind the research in the article would land us with a pirated game to purchased ratio of 5:1 and a loss of 83% in revenue, which is bullshit because the pirate obviously wouldn't have paid for everything he pirated in the first place so it can't possibly be regarded as lost revenue.

This isn't my opinion on the morality of piracy, it's just me calling researchers out for shamelessly telling the public white lies.

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+1 # RE: RE: UK game piracy "4:1 against legitimate sales"UltimaXX 2011-01-25 14:48
And here kids, is a perfect example of why it's a good idea to read an article before you comment on it.

My rant is probably valid somewhere else, but not here.

Damn.

/ leaves to watch Being Human

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+2 # BHPSPfNruelzdude 2011-01-27 20:27
Good show!

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+1 # RE: RE: RE: UK game piracy "4:1 against legitimate sales"ISOHaven 2011-01-28 13:31
Yeah but, what you said was spot on! ;)

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+3 # RE: UK game piracy "4:1 against legitimate sales"PS360 Owner1 2011-01-25 15:12
Don't freaking price the games so damn high!

47.99 GBP for Mass Effect 2 on PlayStation Store UK

20 GBP or 30 GBP is very affordable, but don't pass the limit, or things like these happen (piracy).

I know the games will drop their prices by just waiting months.

I really want FIFA 11 (PS3) but I know it will be cheap as hell when FIFA 12 comes out so I won't bother with it right now.

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+1 # RE: UK game piracy "4:1 against legitimate sales"DSpider 2011-01-25 15:24
More like 10-15% last time I checked. Definitely not 400%. But it does depend on the platform.

Here's my message to developers and publishing houses: If your incentive is money you're doing it wrong.

Get a game out there that you truly worked your ass off, put heart and soul into it, and it will take care of you. Be proud of your work. Because there are just too many shitty games out there, cloned ideas, concepts...

Don't stiff the gamer with the most awesome demo when the full version blows chunks.

Don't pay off reviewers and gaming sites to amp up the score. It's been done to death. Seriously. I don't even follow movie ratings anymore for this exact reason. Same thing with trailers. The trailer has all the best parts while the rest of the movie (or game) is meh.

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+2 # RE: UK game piracy "4:1 against legitimate sales"ISOHaven 2011-01-25 15:29
Well, to start, I think the ratio is total BS. But let's say it's real. 4:1 is NOTHING! Wanna guess what music piracy rates at? Movies? Yet all these industries remain filthy rich!!!

Thorn? I think not! About as much of a thorn as it is to only be able to afford 5 vacation homes around the world instead of 6! DAMN!!! If only I could buy that 6th additional house! If only it weren't for piracy!!!

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-2 # RE: RE: UK game piracy "4:1 against legitimate sales"UltimaXX 2011-01-25 15:36
To be fair, it does affect the little men more. The coders, designers, all these people lower down in the commercial food chain are always the first to be cut off so the executives can still afford the proverbial sixth house.

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+1 # ...cory1492 2011-01-25 16:52
Reality check UltimaXVIII: that happens without piracy playing a factor. Check any industry where direct theft of _physical_ merchandise doesn't play an overwhelming factor.

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-3 # RE: ...UltimaXX 2011-01-25 17:31
Cheers Sherlock. I know that it happens even without piracy, just as murder still happens in the absence of guns, but there's no denying that piracy exaggerates the effects, if only marginally.

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+1 # RE: RE: RE: UK game piracy "4:1 against legitimate sales"ISOHaven 2011-01-25 19:52
Nah, I don't buy it. I write software (not for a living, side job) and I've seen my applications on pirated sites. Especially the U3 versions of my apps.

Yet, I have no beef with piracy. It does not hurt anyone's bottom line. People who pirate would not have bought the license anyway. That doesn't mean they aren't stealing but it does mean they are NOT taking money out of my pocket.

There is no loss.

What you have to factor in is how many of those pirates would actually buy the game/app if piracy on said platform was not available. Not only is the percentage of pirates extremely LOW, but the percentage of these game/app buying pirates is damn near non-existent.

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+1 # RE: UK game piracy "4:1 against legitimate sales"tech3475 2011-01-25 16:31
1. I say bs.

Does this also take into account DD eg. Steam? I also say they are over-guesstimating

2. Since drm doesn't work I say they should just abandon it and make it better for legit consumers.

3. Make games cheaper.

4. How many of these people would buy it anyway?

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+1 # ...Jhon White 2011-01-25 18:30
Seeing companies suffer because of piracy is the reason I wake up in the morning.

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+2 # well....Alaba Baju 2011-01-25 18:46
I have seen where piracy had a good effect. Someone used to downloaded pirated psp games but his conscience kicked in and now he is buying some games he never would have bought if he hadn't discovered them through piracy. I support the argument that most people would probably not buy the amount of games they pirated in the first place. So it was never really a loss, also cheaper games would do the trick :-)

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# typoAlaba Baju 2011-01-25 18:48
Quoting Alaba Baju:
downloaded ---> download:-)


I wasn't going to let someone laugh at me :roll:

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-1 # RE: UK game piracy "4:1 against legitimate sales"phiyuku 2011-01-25 19:09
If someone pirates a 1 dollar iTunes App is not the same as if someone pirates a 60 dollar PS3 game because the loss from a 1 dollar iTunes App is not as big as a loss from the 60 dollar PS3 game so it is not fair to say that since it is a 4:1 ratio and a game costs 60 dollars that the industry as a whole is losing 240 dollars for every 60 dollar game and don't get me started on how the industry counts every game pirated a loss if the person who pirated it never intended to buy the game.

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-1 # RE:HDD 2011-01-25 19:38
But if the pirate never intended to buy the game, then why should they still be able to enjoy the content given?

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-1 # RE: RE:phiyuku 2011-01-25 22:04
But if the pirate shouldn't be able to enjoy it then he still wouldn't have purchased it.... It's not about morals right now okay stop trying to justify your side with bullshit like that. It is about if he had to buy it would he have bought it.

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+2 # RE: UK game piracy punk 2011-01-25 19:19
1 pirated game does not equal a lost sale as it widely understood that pirates download more games than they would otherwise buy legitimately so without factoring in this behaviour these numbers mean nothing

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# RE: UK game piracy "4:1 against legitimate sales"Zenshua91 2011-01-25 19:32
Seems the same ragef*g is tormenting this story too. Who votes for disabling the voting system? (pun intended)

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# RE: RE: UK game piracy "4:1 against legitimate sales"UltimaXX 2011-01-25 20:29
I just want this person's IP exposed, or all their usernames posted on the frontpage. It's getting pretty pathetic now. I was never exactly hurt because of the thumbs downs, but it's gotten to the point where I can't tell whether people actually have a problem with something I say or if it's just some loser with nothing better to do than piss a few off.

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# RE: RE: RE: UK game piracy "4:1 against legitimate sales"UltimaXX 2011-01-25 20:30
Actually, you know what'd be awesome? A Facebook-esque "like" system, where we can see who approves and dissaproves of certain comments.

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+1 # RE: RE: RE: UK game piracy "4:1 against legitimate sales"ISOHaven 2011-01-28 13:35
Which person? You can only vote once. So far 12 people have voted. Eh, does the voting really do anything? I dunno, I never visit the front page. I get all my QJ goodness from RSS.

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+1 # ...symbal 2011-01-25 20:35
Now then which developers are gonna come out crying that piracy costs them 75% of potential profits? I know there's plenty out there that whine about 1 pirated copy = 1 lost sale, but the fact is piracy is like an Indian train, some people pay to make sure they get on properly but a s*it load more just wanna cling onto the sides hoping they don't get thrown off, then you got the developers stepping out into the tracks and complaining when they get run over. Developers just have to realise if they gonna complain to anyone it should be console manufacturers because they make the security that allows piracy.

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# RE: UK game piracy "4:1 against legitimate sales"But Fukir 2011-01-25 22:29
"...around GB£ 1.45 billion was lost in sales to piracy in 2010 alone"

How can they determine what would have actually been bought if it wasn't DL'd for free?

I remember back on the ps1 before you could DL games so easily I just had a lot fewer games.

And I still wasted a lot of money on a bunch of turkeys.

Thanks to pirating and previewing I can avoid that now and and just pay for all the packaging and artwork for the good ones.

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# RE: UK game piracy "4:1 against legitimate sales"NakedFaerie 2011-01-26 01:35
I agree with others here.
The reasons behind Piracy are:
1. price
2. availability
3. coz

And if piracy is so high then how did COD Black Ops make $1 billion dollars in the first month?
I don't think Piracy is that troublesome as they make it out to be.
Yea, I download pirated games but I also buy those games when they are at a price worth paying for, or they are available here.

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# RE: UK game piracy "4:1 against legitimate sales"NakedFaerie 2011-01-26 01:35
If a game never comes here then I have no choice but to download a pirated version do I?

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# RE: RE: UK game piracy "4:1 against legitimate sales"But Fukir 2011-01-26 03:53
I'm mostly like to DL Japanese games and hacks like undubs.

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-2 # RE: RE: RE: UK game piracy "4:1 against legitimate sales"UltimaXX 2011-01-26 12:20
This. I pirated Pokémon Black, but I fully intend to buy it the second it comes out in England.

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-2 # RE: RE: UK game piracy "4:1 against legitimate sales"Zenshua91 2011-01-26 11:18
This is actually a debatable topic, however it works the same way as anime that is unlicensed in certain countries. It is perfectly fine and legal to stream or host unlicensed content in a country, but once licensed in that country it becomes frowned upon. In other words, a Japanese-exclusive game would not be licensed to the US or EUR, so it should work the same way despite being an act of piracy it's it's own. Should the game become licensed for the US and EUR regions, then I guess there would be problems (not really, no one does sh*t about piracy anyways, everyone does it in some fashion).

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# Piracy killing gaming???Kreationz 2011-01-26 03:55
Then how is it on the absolute most rampant piracy platform of all (even piracy experts agree on this) the PC, Blizzard continues to consistently break all time sales records? Whether, it be expansion packs(~5 million copies of WoW: Cataclysm have already been sold) or complete games (StarCraft 2 sold more than 1.5 million copies in the first 48hrs), records continue to be broken. Now Cataclysm has an installed user base being and expansion, and StarCraft 2 is a franchise title... but let's turn to consoles... the Top selling console games of all time(for and individual console and not bundled with the console) are for the Wii and DS(6 of the Top 20 are DS titles), but there's no piracy on those two systems...

What is comes down to is price and user base. Hand-held titles are easy to pirate but they cheaper so they sell better. PSP vs DS... PSP (~62 million sold), DS (approx 135 million sold), top title on each PSP(3.1 million), DS (18.5 million). Sony will say that it's due to rampant piracy on the system(yup they are right about that), but if they would have matched the DS in price upon release they would have sold many more units and in turn more games. If the games matched the DS in both price and quality it also would have further increased sales. Same goes for other consoles: Let's go for a much closer comparison. PS3(40 million) vs 360(50 million): not a huge difference there... Top game sales 5.5 million(1/8 of the base) vs 8.1 million(1/6th of the base) and the PS3 was hacked hacked and has a much lower piracy rate than the 360.... BTW, throw in the Wii (75 million) and you get 6 different titles (not including bundled titles) that are not only in the top 20 console sales of all time, but beat MS's 6:1 consoles per copy ratio with most of those beating at least 5:1.

The long story short, cheap consoles(you need a user base and seriously who's buying a 700$ console for their kids when they can pay $200 to a competitor...) plus quality games (say what you want about Nintendo they are more creative than Sony/MS) = less piracy(in terms of pirate/sale) and much more sales.

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# RE: Piracy killing gaming???Kreationz 2011-01-26 04:10
BTW, Sony is only pissed at GeoHotz because piracy has killed a lot of development for the PSP and their afraid the PS3 is next... In short Sony may have the "most powerful consoles", but they keep pissing off the wrong group of consumers... (Developers)

I own all the mentioned consoles(except DS), I haven't hacked my 360 because if I want to make brew for it.(I've got XLIG). I hacked my PSP because the games where crap and I couldn't get the PSX titles I wanted officially(I hacked mine and ripped my collection, too bad they forgot how to make good games...). Now I only use it for PSX and homebrew... (DaedalusX64 anyone :P) I don't own a DS as it seemed to gimicky to me and there is a title that's a must have on it for me yet. My PS3 is yet to be hacked but it's next on my list... why? OtherOS removal... F*** YOU! Sony for taking away something I paid for(next time on PS4/PSP2 don't piss off developers, because remember developers or would be developers = hackers).

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# ActuallyTPot 2011-01-26 19:29
Quoting Kreationz:
BTW, Sony is only pissed at GeoHotz because piracy has killed a lot of development for the PSP and their afraid the PS3 is next...

Actually I think they are pissed off because the PSP2 distribution is already stuffed before it is announced. Sony would have planned on putting the certs for psp2 on the ps3 just like the psp ones. I reckon that would have been how they distributed physical media and let the ps3 decode it for the psp2. Now it is stuffed, as soon as they put the certs on the ps3 we would have them.

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# RE: Piracy killing gaming???Eric999 2011-01-26 16:14
The reason Blizzard sells so many copies of WoW is because even if you download a pirated copt you still need a CD key and still have to pay for a subscription.

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+1 # RE: Piracy killing gaming???symbal 2011-01-26 20:12
Sony can complain about Psp piracy till their tits fall off, but the fact is whether you like the DS or not Nintendo created a console with much wider appeal and just like Apple have done they've actually new gamers by making it fun and educational and good for your health, so they made parents and pensioners into gamers. Where Sony did make gaming acceptable with the Ps1, now all they do is hugely lag behind the competition implementing new features and blame everyone else for their own dumb mistakes. You could call them leaders in the 90's but now you can't even call them followers because they constantly take their own path which almost always leads to nothing, so if they just sort theirselves out people might actually want to buy games like Nintendo can manage.

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# MonaLIZADMLiza 2011-02-07 08:27
How many of those that have justified piracy actually are lucky enough to have a job and actually work for more than minimum wage?
I would love to get paid for working in a shop where all the gear is getting nicked, copied, distributed etc so I can carry on as a telentless uncreative type bitching about how I had a right to steal the stuff cos it only took the creator 2 minutes to make or how the big boss got most of the profit. They'd have me marched off the premises in no time. I could justify nicking everything saying that I need it, or it's not available to people on my salary or in my language etc. Everytime an HMV or GAME shop closes the customers rush in an cry, do I say never mind just go pirate a load of gear and save yourself some money. The people who joined the dole after HMV, GAME, WOOLWORTHS, VIRGIN, ZAVII could hear the cries of the pirates comming long before they got their last pay cheque. Some of them are still claiming your hard earned tax to keep them from becoming pirates too. Anyone for the new improved AAAARRRR4 card?

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