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.

_____________________________________________________________________________

"Power means nothing without honor and pride."

http://grifsgamereviews.blogspot.com My video game review site.

Atlanta Video Games Examiner for examiner.com

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.

 
Forgot your password?
Username :
Password :

Poll

Is King right? Should all games adopt the free-to-play model?:

Shout box

You're not permitted to post shouts.
Andrew EisenAs it happens, Chinatown Wars is the only GTA game I've played.04/19/2014 - 10:43am
Papa MidnightWith GTA5 (to date) failing to even provide indication of a PC release, I'm realising that this might be the first GTA game that I have not played (outside of Chinatown Wars) since the series inception.04/19/2014 - 8:14am
IanCSo im guessing a bunch of edutainment games, which a lot of people elsewhere are going gaga over, dot count as classics? Okay. If you don't mind me, i have a sudden urge to play Putt Putt....04/19/2014 - 6:15am
MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
MaskedPixelanteNumber 3: Night Dive was brought to the attention of the public by a massive game recovery, and yet most of their released catalogue consists of games that other people did the hard work of getting re-released.04/17/2014 - 8:46pm
MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
 

Be Heard - Contact Your Politician