Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in China

May 27, 2011

Microsoft CEO Steve Ballmer said earlier this week that piracy costs his company 95 percent of potential revenue in China. Ballmer made the comments in a speech at the opening of the new Asia-Pacific R&D Group headquarters in Beijing. Ballmer rejected the notion that software piracy is rampant in China because PC Software costs too much. He claimed that if someone can afford to purchase a PC in China, they could afford to buy the software to run on it. Most people in China can't afford to own a computer, let alone Windows 7..

Ballmer went on to say that Microsoft earned six times more per PC sold in countries such as India compared to China, and that if Chinese IP protection were as strong as India's then the market would be worth "billions of dollars."

Software makers, pirates and the Chinese government have been at odds for a very long time over piracy. Software makers want the government to enforce IP protection laws, pirates do as they see fit because software is pretty expensive and out of reach to citizens, and the government does very little to deal with either problem.

According to data from the Business Software Alliance, 78 percent of software used in China last year was pirated, down from 86 percent in 2005. I suppose that's something to be excited about.

Source: Ars Technica

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Comments

Re: Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in ...

Submitted by koichan on Sat, 05/28/2011 - 06:50.

If the price is not affordable for people in the region they're not going to buy it.

If they somehow managed the impossible and got an unbreakable drm system going, they probably wouldn't get any more sales but would wipe out windows usage in the region.

Re: Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in ...

Submitted by hellfire7885 on Sat, 05/28/2011 - 11:44.

I'd say that would make Apple happy, but If they can't afford Winows PCs then Apple is out of the question.

Re: Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in ...

Submitted by Grif on Mon, 05/30/2011 - 03:28.

I have a bet going with my friend to see who will make the first unbreakable DRM. I'm betting on Apple, he thinks it'll be Microsoft. Although this bet may have to be bequeathed to our grandchildren.

_____________________________________________________________________________

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Re: Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in ...

Submitted by Thad on Fri, 05/27/2011 - 19:07.

And how much potential revenue was lost by charging $200 for an OS upgrade?

Re: Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in ...

Submitted by Speeder on Fri, 05/27/2011 - 14:15.

The "potential revenue" thing is pure bullshit.

Ballmer needs to learn from Mr. Gates that once said:

"If they have to pirate, than I want them to pirate from me."

--- Maurício Gomes twitter.com/agfgames

Re: Ballmer: Piracy Cost Microsoft 95 Percent of Revenue in ...

Submitted by hellfire7885 on Fri, 05/27/2011 - 13:52.

I'd figure most of what's being pirated in China might well be banned there anyway.

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DorthLous: I love how she plays the "I'm a parent, you're a gamer, you couldn't understand" card... I'm a parent and I find her position despicable...05/23/2013 - 4:16pm

E. Zachary Knight: She didn't address your questions because she doesn't have any answers.05/23/2013 - 3:38pm

Andrew Eisen: I replied to her comment. Maybe in a few weeks I'll get a reply.05/23/2013 - 3:24pm

Thomas Riordan: @Andrew Eisen To what bowling alley does she go that puts sexual images in the faces of 6 year olds?05/23/2013 - 3:17pm

Andrew Eisen: Well, it took a month but Linda Stender finally replied to me... and didn't address a single one of my questions. http://aswlindastender.com/2013/04/23/follow-up-video-games-and-their-effect-on-children/05/23/2013 - 3:13pm

Imautobot: Also, from a tech perspective the PS4 is apparently already winning. http://bgr.com/2013/05/22/xbox-one-vs-playstation-4-specs/05/23/2013 - 3:12pm

Imautobot: Sony's PS4 motto should be "We play games." Microsoft's should be "We play games, when we're not rewinding your tapes."05/23/2013 - 3:11pm

Andrew Eisen: Oh look, Dying Light was just announced For Everything But Wii U. That's 73.05/23/2013 - 2:06pm

james_fudge: Zippy: they said the same thing about Cell. How did that turn out.05/23/2013 - 1:28pm

Andrew Eisen: Need for Speed Rivals is coming out For Everything But Wii U - PS3, 360, PC, PS4 and Xbox One. That brings the grand total up to 72.05/23/2013 - 12:55pm

PHX Corp: http://wiiudaily.com/2013/05/microsoft-is-selling-the-wii-u-better-than-nintendo/ Wii U daily Opinion: Microsoft is selling the Wii U better than Nintendo05/23/2013 - 12:23pm

E. Zachary Knight: Zippy, they very well may be. But that will only last until they are released. At that time, they will be two generations behind.05/23/2013 - 11:14am

ZippyDSMlee: for a good luagh, http://www.escapistmagazine.com/news/view/124288-EA-Exec-Xbox-One-and-PS4-Are-A-Generation-Ahead-Of-PC05/23/2013 - 10:55am

james_fudge: It's about time! I need W805/23/2013 - 10:49am

MaskedPixelante: Looks like Gamepot is more willing to play ball than Square Enix. Wizardry 6+7 and 8 are available on GOG.05/23/2013 - 10:36am

DorthLous: Anybody tried Hiversaire? Thoughts?05/22/2013 - 5:48pm

E. Zachary Knight: New Humble Bundle Weekly Sale. Alan Wake: https://www.humblebundle.com/weekly No Linux or Mac support. :(05/22/2013 - 1:46pm

E. Zachary Knight: Microsoft talks about the lack of backward compatability. You're backwards. http://www.gamasutra.com/view/news/192801/If_youre_backwards_compatible_youre_really_backwards.php05/22/2013 - 1:39pm

E. Zachary Knight: That is absolutely nuts there. As bad an experience XBox Indie Games was, the problems weren't with the self published side of things. Forcing a publisher onto independent studios is not going to help.05/22/2013 - 10:43am

MaskedPixelante: http://www.eurogamer.net/articles/2013-05-22-microsoft-wont-let-indies-self-publish-on-xbox-one And the hits just keep on coming.05/22/2013 - 9:20am

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