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


Comments

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

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 ...

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 ...

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 ...

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

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

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

--- MaurĂ­cio Gomes twitter.com/agfgames

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

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

 
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E. Zachary KnightInfo, or they could have left it only for people in your friends list.05/26/2015 - 7:21am
Infophileas being "family friendly." A kid could easily flip an option and be hit with a torrent of abuse they weren't expecting.05/26/2015 - 5:30am
InfophileI think Nintendo was between a rock and a hard place with voice chat in Splatoon. Leave it in, and jerks will drive off younger players. Leave it out, and competitive players won't play. Even if it were in but disabled by default, they couldn't sell it...05/26/2015 - 5:29am
Matthew Wilsonthis is a nice video on P.T https://www.youtube.com/watch?v=K-85jO6nRNQ05/25/2015 - 11:57pm
Matthew Wilsonmaybe, but its still kinda sad even as a joke.05/25/2015 - 11:51pm
Goth_SkunkThe best commentary is delivered through humour.05/25/2015 - 11:36pm
Andrew EisenIt's not needed. It's a joke. Albeit one with quite a bit of commentary packed into it.05/25/2015 - 10:59pm
Matthew Wilsonmot game related, but still interesting. http://www.polygon.com/2015/5/25/8654983/jurassic-world-chris-pratt-apology the fact that this is even needed in modern culture is a embarrassment.05/25/2015 - 10:26pm
Matthew Wilsonyeah, but with no voice chat its doa.05/25/2015 - 9:48pm
TechnogeekYet, you're going to be hard-pressed to find anyone other than insecure 2EDGY4U teenagers seeing it as anything other than an extremely fun game.05/25/2015 - 8:36pm
TechnogeekSplatoon's probably the best example at this point. Gameplay-wise, it's a team-based third-person shooter with a significant online component. It's rated E10.05/25/2015 - 8:36pm
TechnogeekThe silliest thing about most of the Nintendo hatred is that they may be the last company that interprets "family-friendly" as meaning "fun for more than just the really young kids".05/25/2015 - 8:33pm
ZippyDSMleeWell it could be worse, like skyrim out of the box, a shame DAI dose not have that level of editing...05/25/2015 - 5:58pm
Zenpretty well without getting "nasty". Many people are disappointed in the decision and the about face on the status of the games development.05/25/2015 - 4:22pm
ZenEvery market has horrible people...but being like this towards all of them in a group is not a way to garner support and can make people more hostile towards you. Ironically his response was to someone that wanted to state a disagreement, but worded it05/25/2015 - 4:22pm
Goth_SkunkAs demonstrated by Ian's remarks, that 'market of possible fans' is apparently negligible.05/25/2015 - 4:18pm
Zeninformation while other versions had everything talked about openly.05/25/2015 - 4:15pm
ZenYeah, I've read through it and wanted to make sure I had it quoted correctly. I get there are issues, but this is horribly unprofessional and just burning a market of possible fans..many of which supported them and were waiting while getting little to no05/25/2015 - 4:15pm
Goth_SkunkOh wow. That's not even misquoted, he actually said that. Though for additional context in previous pages, he truly does not think highly of Nintendo console owners, and claims that in the industry, he's not alone.05/25/2015 - 4:12pm
ZenI also took a screenshot of the statement in case it is taken down (via my Twitter): https://twitter.com/zenspath/status/60293960536562483205/25/2015 - 4:05pm
 

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