[bendangelo]

When the Nintendo Switch became hackable, ie can play any game, Nintendo saw a massive decrease in sales in Spain. Btw people in Spain pirate the most games in Europe. The decrease was at least 40%. The idea that this is a service issue and piracy doesn’t affect sales is just PR speak. If the game is offline, it’ll be pirated a lot.

[fc417fc802]

Both you and GGP make concrete claims but fail to provide evidence. Can anyone cite published sales data or is this all mere conjecture?

We've been exposed to what seems like FUD about piracy killing sales since approximately forever - you wouldn't dOwnLoAd a cAR - but seemingly zero actual evidence to date.

[mindcandy]

My source is first and second hand reports from management of game companies having worked in the industry for decades. But, they don’t make numbers like that public.

The best public report I can find is https://www.sciencedirect.com/science/article/abs/pii/S18759... which shows a median difference 20% of revenue for games where Denuvo is cracked “quickly” but also no significant difference if Denuvo survives for at least 3 months.

What I’ve observed from internal reports from multiple companies is that, if you don’t assume an outlier blockbuster game, major game studios’ normal plan is to target a 10% annual profit margin with an expected variance of +/-20% each year.

So, assuming you have a solidly on-target game, DRM not just being there, but surviving at least a couple months is the difference between “10% profit moving the whole company forward on schedule” vs “10% loss dragging the whole company down” or “30% profit, great success, bonuses and hiring increases” depending on the situation.

Outside of games, I have seen many personnel reports on Hacker News over the years from small-time ISVs that they find it exhausting they need to regularly ship BS “My Software version N+1” just as an excuse to update their DRM. But, every time they do, sales go back up. And, the day the new crack appears on Pirate Bay, sales drop back down. Over and over forever. Thus why we can’t just buy desktop software anymore. Web apps are primarily DRM and incidentally convenient in other ways.

[nottorp]

> which shows a median difference 20% of revenue for games where Denuvo is cracked “quickly” but also no significant difference if Denuvo survives for at least 3 months.

So how did they measure the difference? They released one title with Denuvo then erased everyone's memories about it and released it again without?

Because if you compare different titles I don't know what you base that percentage on.

[fc417fc802]

Clearly they didn't. If such definitive data existed they would publicly release it because it would be in their own best interests to do so.

Notice that GP amounts to "well I can't actually provide any evidence, but if I could then here's what it would look like".

[toyg]

> Web apps are primarily DRM

I've been saying that for decades at this point. Web apps trade post-release support issues with slightly higher development costs upfront (dealing with browser compatibility), but the real kicker is that the company is now in complete control of who gets to use what and when.

[fc417fc802]

It's a vacuous argument. Even in the complete absence of piracy web apps would still have won out over desktop software due to turning a one time sale into a recurring subscription. That's what drove their adoption.

MMOs show the same thing. There are plenty of multiplayer games with centralized servers that are effectively impossible to pirate. But subscription based MMOs score a clear win in terms of revenue.

(It turns out free to play gacha is even more lucrative than subscription, but I digress.)

[BrenBarn]

> My source is first and second hand reports from management of game companies having worked in the industry for decades. But, they don’t make numbers like that public.

As an aside, I find this kind of behavior on the part of companies rather irritating. It's like, if you want people to believe that something affects your sales, you need to publicly release the sales data (and do so in a way that people will trust). Otherwise there's no reason for anyone to believe you're not just making stuff up.

[sokoloff]

Why would they care if you or I believe them or not?

[BrenBarn]

I didn't say you or me, I said anyone. They need someone to believe them, otherwise no one will care when they complain about lost sales.

[sokoloff]

That’s my point: they don’t need people to care.

They just need law makers to support IP/DRM laws that allow them to continue to operate. (I made games for a while at a small studio; I understand some of the pressures that studios are under and don’t support piracy of games.)

And they can get that support without publicly releasing detailed time-series sales data.

[scns]

> Btw people in Spain pirate the most games in Europe.

They have very high unemployment among young people, might be related.