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The Daily GameDev.net

Modern What?: The big news today is that the release of Modern Warfare 2 has seen the game sell over 1.23 million units in a single day in the UK. This doubles the previous record set by GTA IV in 2008. 1.23 million units is coming up to half the 3 million units shipped to the UK in the first place.... With success like this, it's hardly suprising that there's a rumour that the next Medal Of Honor game may be set in the present day.

EA Layoffs: Promit covered the huge EA number of layoffs yesterday - today it's come out that the layoffs will hit some of the major studios within EA. The Command and Conquer team to to have taken a huge hit as well as Pandemic, Mythic and Maxis. This is coming at a time where EA's early and heavy betting on the Wii has fallen short of their expectations.

Natal Leak: MCV are reporting that Natal will be with us in November 2010, will release with 14 games and cost between £30-£50 GBP. No wonder that Microsoft have listed several Natal-related jobs on its site.

XBox Pirates Walk the plank: As I reported last week, Microsoft were threatening to ban the XBox Live accounts of those that have modded their console to play pirated games. Today Microsoft have confirmed the move and banned those accounts affected. Although Microsoft have declined to give an actual figure, gamesindustry.biz estimate it to be around 600,000 users - a small percentage of the actual Live users out there.

40% UK Studios unaffected by Piracy: Develop are reporting that a recent survey by TIGA shows that 40% of UK studios don't feel that piracy is an issue that affects their business. The vast majority (90%) do, however see it as being an increasing threat in the future. This comes on the back of the large iPhone piracy figures that have been dripping out over the past couple of weeks.

Odds and Sods


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Quote:
The big news today is that the release of Modern Warfare 2 has seen the game sell over 1.23 million units in a single day in the UK.
Don't forget the 2.5 million orders in the US! I would like to congratulate all 200,000 online petition signers for, umm, successfully, uh...yeah. You really showed Infinity Ward and Activision this time!

Quote:
XBox Pirates Walk the plank
I'm actually kinda surprised by this. I mean, it's the right thing to do, sure, but 600,000 paying accounts, that's $30 million a year in subscriptions. I doubt they'll recoup even a significant percentage of that through smaller server load and people going legit.

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The EA betting loss in the Wii is karma paying them back for ditching the Dreamcast. Surely that's the most logical answer?

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Quote:
Original post by lmelior
I would like to congratulate all 200,000 online petition signers for, umm, successfully, uh...yeah. You really showed Infinity Ward and Activision this time!


The petition is a joke (it's an online petition after all), but from what I read on the IW forums, the PC version of the game isn't ripped away...

Quote:
MCV are reporting that Natal will be with us in November 2010


From what I can gather the damage done by the wiimotes will be minuscule compared to what this Natal thing can lead to... or am I missing something? :)

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Quote:
Original post by lmelior
Quote:
XBox Pirates Walk the plank
I'm actually kinda surprised by this. I mean, it's the right thing to do, sure, but 600,000 paying accounts, that's $30 million a year in subscriptions. I doubt they'll recoup even a significant percentage of that through smaller server load and people going legit.


Well, that depends on how many games those pirates would otherwise buy.

I read this on Slashdot this morning and commented how Xbox Live is really Microsoft's biggest anti-piracy incentive. Since most games these days have a strong multi-player component locking the pirates out is essentially locking them out of a huge portion of the game experience. Speaking for myself, most games wouldn't be worth pirating if I couldn't play them online.

And sure it's essentially costing Microsoft $30m in subsribers, but how much are those 600k pirates costing them in lost liscense revenues alone? How much are the pirates costing the developer of each title they pirate?

If you make the distinction between how many titles a given individual has pirated vs how many games they would have purchased (and I do -- when its so easy to pirate and a black DVD costs less than a game rental you're going to pirate stuff you never would have purchased yourself anyway, if not everything you can get your mits on) I'd make a fair estimate of 10+ lost game sales. Assume Microsoft collects $5 of each sale through liscense fees, and the devs themselves collect $10, then those pirates are costing Microsoft $30m in revenue, and developers a further $60m in revenue. I don't so much care about publishers loosing out in most cases, but since they take the lion's share of profits (lets say they pocket $20, and the rest goes to production and marketting) we can probably assume that's another $120m in lost revenue for them. Then there are the retailers, who make about $5 on a new game, for another $30m -- The bottom line is that Microsoft loosing out on $30m is only a pitance of the $360m that those lost game sales should be generating, which goes into the economy *somewhere* -- and most of those somewhere's are close partners (publishing, development, retail) of Microsoft's, so its in their best interest to protect them.

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what really sucks about the whole banning issue is that these people can sell their modded Xboxes on eBay (for example) and people who buy them will not be allowed online, because the warranty is non-transferable. D'oh!! Spread the word and warn any of your friends who are looking to purchase used Xboxes at deals that seem to good to be true.

Also in regards to why MS would do this - wouldn't modded consoles present a security threat to them, never mind the whole pirating issue?

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Agreed -- Someone had made that point on slashdot as well. Here's hoping that Microsoft will create a registry of blocked consoles that can be checked by their serial number.

Granted, that won't stop the ass-hats that don't care about selling borked goods to others (My brother, for instance, once bought a $2000 laptop off ebay, only to find out that it had been repeatedly serviced by dell (more than 4 times in 9 months) for the same issue (overheating), but the seller advertised as "works great!" of course), but at least you'd have grounds for recourse through ebay that what you got wasn't as advertised: mismatched serial numbers.


And yes, aside from the financial reasons there are a slew of other reasons -- modded boxes can give a user an unfair advantage with modified software, could aid in reverse-engineering the console itself, or the Xbox-live protocol, etc. The greatest aspect of Live is the relative infrequency of cheating -- keeping the modders out of the service plays a big role in that effort.

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Quote:
Original post by Ravyne
Well, that depends on how many games those pirates would otherwise buy.

...

I'd make a fair estimate of 10+ lost game sales.

Whoa! Holy gross overestimate Batman! You say these 600,000 would have each spent $600 dollars on games had they not pirated them. I would wager the real number is closer to a tenth of that. Probably less. I'd be willing to bet that a vast majority of the people doing this are either incredibly cheap or just poor, or both. Like college students. So most of the actual lost sales revenue will go to either Gamestop or some private reseller because they'd buy used to save money, or they would do what I do, wait until the game hits about $20, or (my favorite) simply borrow the game from a friend.

None of this is measurable though, so it's all just conjecture at this point.

Quote:
Original post by Gaiiden
Also in regards to why MS would do this - wouldn't modded consoles present a security threat to them, never mind the whole pirating issue?

I saw Microsoft themselves use this argument, but I'm not real clear on it. I've never heard of a security threat from any type of console homebrew, and somehow I doubt that any homebrew could connect to Xbox Live and cause problems. I suspect 99% of modders only use it to play their "backups," since with XNA there is little reason to bother with modding the console for homebrew purposes.

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Admittedly that number is pulled from thin air, but I don't think that 10 games is unreasonable over the life of the console -- I've probably got 30+ games for my original XBox, and around 20 for my 360 already.

If they have money to own a 360 in the first place, and keep up a Live account, then they're going to buy at least a few new games -- as a gamer, its hard to resist pre-ordering the likes of Halo 3 or Modern Warfare 2. I'll concede that many of those games may be second hand. Keep in mind that that stock of used games at Gamestop was largely generated through trad-ins taken as credit toward new games, and that those traded-in games likely came from the same source -- so there is somewhat of a "bubble-up" effect.

I disagree that the majority of modders do it because they literally cannot afford to buy the games, but that they simply don't want to spend the money -- I guess its a natural instinct for some people to do things the cheapest way, even if it's not legit, but that's no excuse.

In the end its impossible to quantify without real research, but I'm certain that the games industry at large benefits several times more than what Microsoft has lost in their subscriber base, and good on them for taking a financial hit now to make sure their partners see their dues in the future, even if they, themselves, may not recoup the loss.

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Quote:
Original post by lmelior
Whoa! Holy gross overestimate Batman! You say these 600,000 would have each spent $600 dollars on games had they not pirated them. I would wager the real number is closer to a tenth of that. Probably less.
Underestimate, more like - that is one game a month for less than a year. Back when we had an Xbox 360 in the apartment, we tended to buy 2-3 games a month, though granted, there were 3 of us sharing the costs, and we defrayed costs by trading in the old ones at GameStop.
Quote:
I'd be willing to bet that a vast majority of the people doing this are either incredibly cheap or just poor, or both. Like college students.
Don't know about the college students where you come from, but around here they are not in general poor. Cheap as hell, yes, and many of them heavily in debt, but that doesn't in any way hamper the outgoings on alcohol, video games, and similar luxury goods.

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