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

--- Maurício 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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Andrew EisenAnd exacerbating everything is the fact that all the cries of ethics violations have been obnoxious and easily proven false.09/18/2014 - 8:59pm
Andrew EisenProblem is, I would imagine, the sheer number of people who are using journalistic integrity as a cover for their harassing actions or only bringing it up on the false pretense of journalistic integrity.09/18/2014 - 8:47pm
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KronoThat's been the common refrain, that talk of journalism ethics is just an excuse to harass people.09/18/2014 - 8:44pm
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Andrew EisenKrono - Except, none of the articles were talking about gamers complaining about journalist ethics, let alone called them white male misogynists. They were talking about the gamers who were harassing others.09/18/2014 - 8:36pm
Kronomakes plenty of sense. It's rather hard to dismiss someone as a white guy running a sock puppet when they've posted proof they're a woman, or black, or another minority.09/18/2014 - 8:32pm
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Andrew EisenSleaker - Not sure what that has to do with anything but yeah, the gender percentages differ depending on how the study defines what a gamer is.09/18/2014 - 8:32pm
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Michael ChandraMind you, if someone makes a mountain out of a molehill with a secret agenda as motive, it'd be fine.09/18/2014 - 5:48pm
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