Valve: Good Service Helps Combat Piracy

October 25, 2011 -

Valve front man Gabe Newell says that there is a way to beat piracy, and it involves content creators and publishers providing better service. In other words, obtrusive DRM solutions are not the answer to the problem.

"One thing that we have learned is that piracy is not a pricing issue. It's a service issue," said Newell at a tech conference in Seattle. "The easiest way to stop piracy is not by putting anti-piracy technology to work. It's by giving those people a service that's better than what they're receiving from the pirates."

"For example, Russia. You say, oh, we're going to enter Russia, people say, you're doomed, and they’ll pirate everything in Russia. Russia now outside of Germany is our largest continental European market. But the point was, the people who are telling you that Russians pirate everything are the people who wait six months to localize their product into Russia," he offered.

"It doesn't take much in terms of providing a better service to make pirates a non-issue."

Newell went on to say that engagement is also important factor. A game offered at a 75 percent discount was able to increase revenue for Valve by forty-fold, according to Newell.

"Promotions on the digital channel increased sales at retail at the same time, and increased sales after the sale was finished," Newell added. "Essentially, your audience, the people who bought the game, was more effective than traditional promotional tools."

"So we tried a third-party product to see if we had some artificial home-field advantage. We saw the same pricing phenomenon. 25 percent, 50 percent and 75 percent very reliably generate different increases in gross revenue."

Source: Geekwire by way of IndustryGamers

Posted in

Comments

Re: Valve: Good Service Helps Combat Piracy

"But the point was, the people who are telling you that Russians pirate everything are the people who wait six months to localize their product into Russia."

The terrible job that I understand happens with a number of Russian localizations probably doesn't help either.

Re: Valve: Good Service Helps Combat Piracy

Also, let's not forget about censorship. Of course someone would rather pirate it if their version is crippled due to mandatory government censorship of the product sold in their country. Not something publishers can really control but it certainly hurts sales. Importing is of course far more expensive so that's not always an option.

Re: Valve: Good Service Helps Combat Piracy

Thier sale drives of 50% or less dose more to combat piracy than anything else. Then again you can talk about CD/DRM cracks for most non stream DRM games and are not banned for it.


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

Patreon

Deviantart

Re: Valve: Good Service Helps Combat Piracy

I can't tell you how many games I've bought for 75% off on Steam. I don't expect a full AAA title to debut at a ridiculously low price, but these deals have allowed me to go back and play many of the games I'd missed along the way at a great price. But enough praise for Valve for now, give me some Half-Life episodes already!

 

Managing Editor at The Best Game Site Ever

Re: Valve: Good Service Helps Combat Piracy

Despite all the jokes about him being fat and unable to count, we all love Gabe. If somepony says they don't like Gabe, they are probably a dirty plebeian console gamer.

 
Forgot your password?
Username :
Password :

Poll

Which group is more ethically challenged?:

Shout box

You're not permitted to post shouts.
MattsworknameNot sure if your being sarcastic, or if you joined up with EA's marketing department07/06/2015 - 4:01am
Andrew EisenI don't know, maybe a heaping, helping of DRM is the panacea for all that ails Konami.07/06/2015 - 1:24am
MattsworknameThe only thing thats gonna save them andrew , is walking back all the stupid they have been doing lately. At this point , ithink they did to much damage to there brand to survive07/06/2015 - 12:42am
PHX Corphad there been a sonic 4 episode 3, I would Buy it on Steam, Xbox 360 and PS3 right away07/05/2015 - 10:10pm
Andrew EisenWell, what if Konami released MGS 5 with a mandatory $60 plastic peripheral? Do you think that would help?07/05/2015 - 8:09pm
MattsworknameI dont think so, I think that between the lose of iga, kojima, and so forth, i think MGS 5 will be less succesfull then they think, and tha will spell there end.07/05/2015 - 7:08pm
Andrew EisenI'm sure the Metal Gear micro-transactions will keep 'em afloat!07/05/2015 - 6:58pm
MattsworknameKonami is dying, slowly, surely, inevitably. Capcom is in the same situation, and I think that if they don't get there respective acts together, there going to pull a thq and sell off all there IP.07/05/2015 - 6:51pm
Andrew EisenHowever, if you have a gaming PC and like PC gaming, the Wii U is arguably the best console you could get (unless you just don't care for Nintendo's games, of course).07/05/2015 - 6:07pm
Andrew EisenAnyway, if the Wii U is your only gaming platform, yeah, you're missing out on a ton of great stuff.07/05/2015 - 6:06pm
Andrew EisenMatthew is referring to my latest video, if anyone's wondering. https://www.youtube.com/watch?v=FkuL1UVHYJA07/05/2015 - 6:00pm
Matthew Wilson@AE the wiiu may have the best exclusives among consoles, but lack of third party support kills it. now if we want to play the exclusives game, the pc wins, not just in numbers,but some of the best games I have played.07/05/2015 - 5:53pm
Andrew EisenPic of the pack with measurements: https://twitter.com/paulfeig/status/61768231705475481607/05/2015 - 5:38pm
Andrew EisenThis is really cool to see. Ghostbusters director helping out cosplayers with prop pics. Here's the thrower with measurements: https://twitter.com/paulfeig/status/61735089365938995307/05/2015 - 5:37pm
Matthew Wilsonhttps://www.youtube.com/watch?v=2lMLRIwiB_c a very interesting video. by Unseen64 Tamaki. the video covers how project hammer fell apart.07/05/2015 - 3:43pm
Andrew EisenImagine if Nintendo started charging for the Super Guide feature it has in some of it's games. That's what the MGS microtransactions sound like to me.07/05/2015 - 12:36pm
PHX Corphttp://www.gamesradar.com/konami-mgs-5s-microtransactions-and-future-franchise/ Konami explains MGS 5's microtransactions & what happens after Koj07/05/2015 - 12:21pm
Andrew EisenFinished Gone Home last night. Really enjoyed that game. Very different. Definitely not for everyone though.07/05/2015 - 11:00am
InfophileI know the ZE series was in the red in Japan, but international series boosted it to profitability. That may not mean it's more profitable in the west, but it does mean ZE3 wouldn't exist without the western market.07/04/2015 - 7:54am
Consterwhy aren't "Video game players" an option on the poll? :P07/04/2015 - 5:19am
 

Be Heard - Contact Your Politician