Can company really "lose" money to pirates?

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Yes because as a single father of two kids with a very small income, it's the only way I can afford to play games. That doesn't make it "right". That's just my reason.
Fair enough... kids are expensive as hell...

As for the companies don't lose a dime bit... I can see your point, but at the same time... there's got to be something lost when a person gets to use the software for free for a number of months before they buy it at a discounted rate.
 
TL: DR-> hey look that thing i wanted for X dollars is now Y dollars on clearance, I AM A DIRTY THIEVE!
Did you miss the part where Jiarn includes having that thing for two years while promising to buy it for Y dollars in the event the publisher lowers the price? That's not the same thing as acquiring something during a clearance sale.

either way the end financial result is the same for the company.
Incorrect, simply because the decision of a company to lower the price is in part also determined by the level of it's first-run sales. If they know that a ton of people pirated their games, they're not going to lower their prices in the forlorn hope that these people who would rather steal than pay the first-run price or wait for the lower clearance price are ever going to buy their games. This also effects the ability of the company to make money back in the same reasonable time period as they are expected to pay their own expenses back.

Jiarn keeps saying, "they'll always get $20", but how do they know that? Besides the impossibility of that, why would anyone think that an anonymous promissory note would actually be good? If you finish a game in a month, why would you pay money for it 2 years later when the price goes down?

Pez, 6Pack, and Dave are quite right; one of the things you're paying the $50 tag for is the right to own and play the game the moment it comes out. If you pirate the game when it comes out, even if you somehow pay $20 for it 2 years later, you've essentially stolen the value of that IP which includes the right of playing it immediately.
 
J

Jiarn

Fair enough... kids are expensive as hell...

As for the companies don't lose a dime bit... I can see your point, but at the same time... there's got to be something lost when a person gets to use the software for free for a number of months before they buy it at a discounted rate.
There's the conversation of the developer feeling he/they did not get paid for the amount of work they put in, and I can appreciate that. Which is why I'm glad when a game I enjoy does well in it's inital months and if I had the kind of income that would allow those kinds of purchases I would gladly take them at full price. I don't wait for the discounted price just because "I can" because if that was the case, I just would never pay at all.

I still try and give my support in the only way I can which is to purchase it once the price has reached my income level.
 

Dave

Staff member
Fair enough... kids are expensive as hell...

As for the companies don't lose a dime bit... I can see your point, but at the same time... there's got to be something lost when a person gets to use the software for free for a number of months before they buy it at a discounted rate.
There is. Most people after playing the game for a couple months won't bother to actually buy it.
 
J

Jiarn

I'm not one of them and he specifically said "then they buy it at a discounted price."
 
If you wait till the price drop, the games will still be new to you.

Read reviews online to determine if the critics you like, like the game too.

That way you do not cut into into the Publisher's profits.
 
J

Jiarn

You've yet to show any way that the publisher lost anything. I'm not "renting to decide if I like the game". You're still not getting it. I check the online reviews to seee if I'll like the game, I find a game I am completely interested in, I find a copy till I can afford it, then I pay what I can, when I can for the game.

It's NO different than borrowing the game from a family member till I can afford it or is that stealing too? Don't give me "Well he paid for it so they got their cost" because they're still not getting money from ME at that point.
 
If you're going to continue to stick your fingers in your ears and make an attempt to financially justify your piracy again and again despite the ludicrous nature of your claims, there's no further point to discussing it. You are stealing the game, even temporarily, and paying less for it later doesn't justify it.
 
C

Chibibar

Ok... so let me see if I understand all of it (I think I do I read all of it but still confuse still)

Software LEET (made up name) original release for 50$ but 6 months down the line it is reduce to 30$ and then 10$at 1year)

If I wait until it is 30$ to buy (cause I didn't want to pay full price) and install and play. I am stealing? (confuse on this part)
If I pirate FIRST and late BUY the software at 10$ I am stealing? (according to some on the board, I would be consider a thief since the time of release to 10$ is 1 year (from above)) cause of time opportunity?
If a pirate download the game and never buys it, we agree it is stealing (no gray areas) but shouldn't be count on loss (IMO) since they will never buy the product in the first place.

Digital products vs physical products differ since physical products there is a limit in quantity. Digital products are virtually unlimited (i.e. just need more serial number which can be generated right?)

Copyrights are in place to protect the maker of these IP so they can make money (pay all their employees and business cost) so they can make MORE products.

Not buying the game at full price can hurt the company in the long run cause they will be less revenue for future development?

Did I get it all?
 
J

Jiarn

If you're going to continue to stick your fingers in your ears and make an attempt to financially justify your piracy again and again despite the ludicrous nature of your claims, there's no further point to discussing it. You are stealing the game, even temporarily, and paying less for it later doesn't justify it.
Seeing as how you refuse to debunk any of my points, (Ex: according to your stance, borrowing the game from someone till you purchased it later at discount = stealing) it really does seem like you're the one going "la la la". I've responded to every point instead of saying "I'm right, you're wrong" as you seem to be doing. Sorry to hear you no longer wish to attempt to debate.
 
They (everybody that is in the supply-chain) lost the the difference in the price from the time you stole their product, until the time you actually buy the product (which I still don't believe.) It is the simplest way to put this. If the utility is $20, wait till the game is $20.

Don't copy that floppy.

If you take the game when it costs $20 and buy it for $9 when it goes on a bigger discount, you still took the difference. It's simple economics. I have an economics minor, I don't use it much, but I've been in these arguments back in college 100's of times.
Added at: 17:02
Chibi, pirating first is subverting market pressure. All the companies involved sell at the high price first because that is what the market bears. As technology changes, tastes change, new games come out, and when the companies involved make their desired profit... market price will lower. So if you jump in and gain "utility" from it when it is expensive and then wait for the market to change, you forced them to lose that difference.

If you just wait for market pressures to change the price, you are just working with the natural flow of the economy.
 
Seeing as how you refuse to debunk any of my points, (Ex: according to your stance, borrowing the game from someone till you purchased it later at discount = stealing) it really does seem like you're the one going "la la la". I've responded to every point instead of saying "I'm right, you're wrong" as you seem to be doing. Sorry to hear you no longer wish to attempt to debate.
You're an ignorant fool, and haven't really addressed anything.

Borrowing it from someone else is different from pirating, since you're basically taking an extra copy of it. It's simple economics. You take something that is worth $50 for nothing, and then pay $20 for it later and don't think you've taken financial advantage of the situation. It's pretty cut and dry that you aren't interested in a debate, you are justifying something clearly wrong to feel better about yourself about it.
 
J

Jiarn

Alright since apparantly we're getting into name calling and personal attacks. I'll go ahead and step out.

Just fyi, it's exactly the same (financially) as borrowing it from a friend. Sorry.
 
M

makare

If I use an artist's artwork as a wallpaper with no intention of buying the actual art, is it the same thing as dling a game I never intent to pay for?
 
If I use an artist's artwork as a wallpaper with no intention of buying the actual art, is it the same thing as dling a game I never intent to pay for?
If there is a GPL or CC license on the work (or the artist said it was okay via ToU or some such), then no.
 
C

Chibibar

Alright since apparantly we're getting into name calling and personal attacks. I'll go ahead and step out.

Just fyi, it's exactly the same (financially) as borrowing it from a friend. Sorry.
Well Jiarn, I think pirating and borrowing from a friend are two different things. At least how I see it.

If you are borrowing from a friend, your friend can't play it since you now hold the license (assuming we currently ignoring the EULA about borrowing)
Pirating, you are technically "borrowing from a friend" but your friend is still playing it. Thus, "technically stealing" during that time.
Now, the "gray area" would be borrowing from a friend AND your friend is still playing BUT paying for it when it is cheaper (in a perfect assuming that you are willing to pay all pirate games at price point of 20$ but you just want to play when it is "worth" 50$)

Am I getting it right?
 
Pirating, you are technically "borrowing from a friend" but your friend is still playing it. Thus, "technically stealing" during that time.
Well that's the oddest definition of stealing i ever heard...

Incorrect, simply because the decision of a company to lower the price is in part also determined by the level of it's first-run sales. If they know that a ton of people pirated their games, they're not going to lower their prices in the forlorn hope that these people who would rather steal than pay the first-run price or wait for the lower clearance price are ever going to buy their games. This also effects the ability of the company to make money back in the same reasonable time period as they are expected to pay their own expenses back.
Like i said, under Jiarn's conditions first-run sales would be the same either way... your argument takes into account the possibility that he's lying to himself or us and that he'd actually buy it at a higher price...

And if we're gonna turn it into that then we won't get anywhere because we don't have any hard data either way... and neither does the company, which is why it's probably a better idea for them to adjust their strategy based on sales instead of how many times a game is d/l from a torrent site.

Piotyr said:
Borrowing it from someone else is different from pirating, since you're basically taking an extra copy of it. It's simple economics.
Once again with the equating a virtually limitless product with a physical one that's subjected to scarcity... 500 years ago there was no concept of IP even... while scarce resources has been with us forever...

Hell, 500 years ago making a copy of a book and making sure your book stayed as close to the master's was the norm, and without that we wouldn't be where we are.

If I use an artist's artwork as a wallpaper with no intention of buying the actual art, is it the same thing as dling a game I never intent to pay for?
Depends on how long ago the artist was alive... and if it was before Steamboat Willie...
 
C

Chibibar

@li3n
I am just getting clarification of Jiran's post about his version of pirating (he said he is still paying for them LATER i.e. when it is on sale) he equates it like borrowing from a friend.
 
Is the artist selling digital prints of his work?
It does not really matter, if it is for sale digitally or not. If Pablo Picaso was alive now, painted a masterpiece, it is sitting in a gallery for sale, and some one gets a good digital image out. Since the art has not been sold, and it is out on the internet, the artist has the potential for losing profit on the sale.

My brother tries his hardest to keep his clients form posting non-trademarked images on their websites. But generally once he sells an image to a client it is no longer his intellectual property. It now belongs to Shell, Exxon, or Academy. Then if the image is stolen from the end client it is their loss not his.

Use of images has more gray area (fair use policies) than software, copy right, and other intellectual property.
 

figmentPez

Staff member
@Chibi

Yeah, it's not like our entire economic system is based on the scarcity of physical objects, something which doesn't apply to ideas once someone comes up with them...
Bullshit. Our enconomy is based on scarcity of anything, be it a physical object, manual labor, expertise, artistic talent, or anything that is limited in supply. Even though some ideas can be readily mass produced once they are implemented, new ideas are still a limited commodity, and the people who not only are capable of implementing those ideas, and have the time, inclination and resources to do so are even rarer.

Patents and copyright are a reflection of the value our society holds for the creation of new ideas. If we value new ideas, the creation of content and the solving of problems, then we'll respect the rights given those creators and try to ensure that the legal framework doing so is fair both to artist/designer/etc. and society at large.

If someone could spend 3 years to make a five loaves and two fish that could be used to feed everybody in the world i'm pretty sure if they sold each little piece for 50$ while people starved most people would agree that the guy that made them would be morally wrong...
Strawman argument. We're talking about movies and games. The only people whose quality of life will be directly impacted by these works is the artists, if they can manage to sell their work.
Added at: 14:20
They, again, are always going to recieve the $20 instead of $60. By downloading a digital copy of the game, not even from their servers, they've lost nothing financially in the situation.
It's really not that simple. There are many ways they could potentially lose money on the situation.
If reports of piracy cause...
- the stock price of any company involved to go down.
- the developer to get denied a sequel.
- people who would have bought the game to pirate it instead.
- retailers to stock fewer copies of future games

That's not to mention the harm caused to other consumers when publishers retaliate against pirates.
 
Also what limits the dress argument are... where does the happy homemaker get her cloth? her patterns?

Most large clothing companies have their own supply of cloth. If the homemaker is using their cloth, then the designer recoups some of those losses. Or if she buys patterns from McCall's, McCall's will pay a licensing fee to the designer.

To make a copy of the game takes "0" talent or time. The dress maker is so rare, that they can generally go into business for themselves and make much more money than they would save by producing knock-offs.

Selling cloth and patterns will make more money for less investment than game companies will see from pirates that will hopefully wait for a large price-break.
 

figmentPez

Staff member
In economic terms enjoying it or not in the time until it reaches a price you're willing to pay for it makes little difference... what matters is whether or not the extra money is spent.The only argument is that if pirating wasn't an option the person in question would have bought it earlier for the higher price...
Again, bullshit. Public perception also plays a role here. I'll admit that more people talking about the awesome game they're playing is actually likely to increase the perceived value of the game in question, but at the same time that also decreases the perceived value of the game on sale if it doesn't get fresh buzz from people playing it for the first time when the price drop hits. My point is that there are very real economic differences between gamers playing a pirated version of a new game, and playing a discount copy legitimately bought a year later (or even a few months later. I bough L4D2 for $30, legit, a mere two weeks after it came out).


Morally there's little difference between pirating it for a little while vs doing it forever, isn't it... how long you do it is only relevant when it comes to punishment/repentance/etc.
Well, except for the whole repspecting another person's property angle. Yeah, I know that people are quick to dismiss the value of ideas and easily reproducible content, but seriously. The creators of the work have made it clear what price they're offering their game for, and pirating the game/movie/book/etc is giving them a big "screw you!" and taking it anyway. It doesn't matter if you pay later when it's gone down in price, the creator is offering it now for a higher price because that's the premium for owning it now. That's what the extra cost is paying for, early access.

Well fun fact, if i take Mark Twain's book and make copies of it and sell it it's totally legal... yet i would be doing to him the same thing i'd be doing to an author that's alive today...
No, you wouldn't because Mark Twain already had his chance to sell his work. Now, we could get into a very interesting argument over if copyright lasts too long (and, yes, it does), but that shouldn't matter for NEW works. We've been talking about pirating games when they're first introduced. Bringing up works that have had their copyright expired, or should have, is a straw-man argument.
Added at: 14:35
Eh... i think you misunderstood why i said the thing about the game... i was just thinking out loud on how the people making games do see them as different then a book... really, see here: News: Pre-owned 'cheats developers' - THQ - ComputerAndVideoGames.com You'd no longer have the disk either.
Oh for goodness sakes. Yes, many publishers think that used sales are ruining their business. Book companies have been shouting this for longer than video game makers. However, Amazon will tell you that used book sales increase the sales of new books. Gamestop will tell you that 80% of trade-in games go towards new-game purchases.

A used market increases the market size for the media in question, including new sales.
 
Plus, as a side consideration on both the moral and financial side, it's much harder to make the "vote with your wallet" argument if people pirate.

Companies are very reluctant, even in the face of (almost never) overwhelming evidence, to admit that their $10 million baby came out backwards and no one noticed. It's something that can be very difficult to determine under normal circumstances, especially in an age when people go on Amazon and make 1-star reviews on products they've never bought or played.

So when people pirate things, companies have enormous (and somewhat justified) incentive to say, "it's not that our game sucks and we need to re-price it or re-do it, it's awesome but our customers are scabrous, parrot-loving THIEVES!! If that weren't the case, they wouldn't have pirated it!!! TO THE DRM-MOBILE!!!"
 

figmentPez

Staff member
Tell me, where does the convenience store loose money? They received more for the product than it cost them, and it was just sitting on the shelf gathering dust otherwise. They were always going to get $2 (at the clearance sale just before it's expiration date), the thief just got his jerky a little sooner.
Still waiting for a reply to this one. If money is all we're talking about here, does that make it acceptable to take merchandise for less than the seller would agree to, as long as you "pay" more for the item than it cost to get on the shelf, and you're not preventing any other hypothetical sales?
Added at: 14:42
It's NO different than borrowing the game from a family member till I can afford it or is that stealing too? Don't give me "Well he paid for it so they got their cost" because they're still not getting money from ME at that point.
No, they're not getting money from you at that point, but neither does your family member have access to the game. That's a pretty big distinction. With borrowing, only one copy of the game is shared. With piracy, an unlimited number of copies get played at the same time.
Added at: 14:47
500 years ago there was no concept of IP even...
Bullshit! Heraldry and other forms of identification has been around for at least that long. Try going back several hundred years and wearing a Scottish tartan of another clan and see how they take to your explanation that IP doesn't exist, and that physical scarcity is the only factor.

(EDIT: or go back to Roman times and try to convince the stone mason's guild that making concrete doesn't violate their control of the industry because the real value is in the limited supply of limestone. The only physical scarcity they'll care about is making the flesh scarce on your back.)

For as long as people have protected their ideals, there has been IP. It may not have been called intellectual property, and it may not have had codified laws, but it existed.
 
C

Chibibar

I have to agree with Fig. Artisans have made special methods to produce their goods and usually keep it a secret (so no one else can make it) they sell their finish goods, but harder to replicate. Of course, back in the old days, people can get kill for "stealing their idea" ;)

Now-a-days, the actual creation of a game takes some time when you do it from scratch (like most company) you have drawings, game mechanics, engine, story boards, and all kinds of stuff to make a game, but unlike the old days when a person make an item (say folded steel sword) it takes time to replicate it. A game takes matter of minutes to copy. It is replicated and distribute faster now than say 10 years ago. So I can see the damage now (from all the reading) but my main question was wondering while legit people will eventually buy them are still consider pirates if they download early (some say yes, some say no) and those CAN be counted in a lost since people get to play and didn't pay for the "advance access"

while there are people who will NEVER pay for a game and just copy it. If it is not out there, they will find something else.

Now as for used-market. I think the industry (i.e. books and gaming company) does not see the big picture. Money is a limited resources for many. Games are costing upward of 50-60$ EACH, trading in old games (and books..... my textbook cost 100$ and that is cheap compare to other textbook bleh!) to buy new stuff. Sure the company lose money on potential sale of the game when people buy it used, but the people who trade it in can use that money for a new game that came out.

So......... that brings a new question that just pop in my head.
If a person keep trading old stuff and buy use games, does the industry consider these people pirates? since the company who made the game will never see a dime from these customer base? (I use to do that for a long time since used games are cheaper, but now I can actually afford new games ;) )
 

figmentPez

Staff member
So......... that brings a new question that just pop in my head.
If a person keep trading old stuff and buy use games, does the industry consider these people pirates? since the company who made the game will never see a dime from these customer base? (I use to do that for a long time since used games are cheaper, but now I can actually afford new games ;) )
There are publishers that have made it absolutely clear that they consider used game sales to be the same as piracy, but I don't think that applies to all publishers, and certainly not to all developers.

Personally I think it's hypocritical for a publisher to advertise at Gamestop (even having midnight launch events there) while at the same time saying that the used game market (which keeps Gamestop in business because of the tiny margins publishers put on new games) is nothing more than legalized piracy.
 
Why does it have to be EITHER a moral OR a financial decision? It's both.
It's not! The company, at the end of the day, will get exactly the same amount of money from Jiarn whether he pirates or not. Therefore, the issue is not financial but moral.

Now, you can say that due to piracy, games lose perceived value. That's possible, but that's something more general than what one single person is doing. He may be stealing, if you want, but the company is NOT losing money from his piracy.
 

figmentPez

Staff member
It's not! The company, at the end of the day, will get exactly the same amount of money from Jiarn whether he pirates or not. Therefore, the issue is not financial but moral.
I'll quote myself:
"It's really not that simple. There are many ways they could potentially lose money on the situation.
If reports of piracy cause...
- the stock price of any company involved to go down.
- the developer to get denied a sequel.
- people who would have bought the game to pirate it instead.
- retailers to stock fewer copies of future games"

Indirect financial harm is still financial harm.
 
Which is what I meant by my second paragraph, more or less. That's still somehow a collective effect where each individual pirated game doesn't make that much of a difference.
 

figmentPez

Staff member
Which is what I meant by my second paragraph, more or less. That's still somehow a collective effect where each individual pirated game doesn't make that much of a difference.
Yeah, I cut that out because it was a steaming pile of crap. "Selling one couple a sub-prime mortgage won't harm anyone, a single defaulted loan won't make much of a difference. It's all those other banks making bad investments that caused the recession."
 
Uhh... no? Those ARE bad by themselves, whereas the indirect damage of piracy is mostly due to it being reported or known.
 
It's not! The company, at the end of the day, will get exactly the same amount of money from Jiarn whether he pirates or not. Therefore, the issue is not financial but moral.

Now, you can say that due to piracy, games lose perceived value. That's possible, but that's something more general than what one single person is doing. He may be stealing, if you want, but the company is NOT losing money from his piracy.
They still lost the difference of the value of the game when the pirate copies the game till the time he "gets around to paying for it."
 
No, they only lose it if the pirate would have bought it otherwise. Indirect financial harm I can accept, but they don't lose the actual 30$ of price difference.
 
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