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

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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.

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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.

 
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Matthew Wilsonbut thats just it those sites, even the small ones, sell all over the country.09/23/2014 - 11:12am
Neenekoeither that or it would follow the car model of today. big ticket items are taxed according to your residence, not where you buy them.09/23/2014 - 11:07am
NeenekoI doubt it would be the retailer that handles the tax in the first place. If it goes through it would probably be folded in as a service on the processor end or via 'turbotax' style applications.09/23/2014 - 11:05am
Matthew Wilsonsimple there are over 10k tax areas in the us for sales tax. it would be impossible for small online retailers to handle that.09/23/2014 - 10:55am
IanCWhats wrong with charging tax in an online shop?09/23/2014 - 10:47am
E. Zachary KnightI don't see why it would be that difficult to maintain one. Especially for a news outlet with multiple people on the payroll.09/23/2014 - 9:37am
Matthew Wilsonthey can, but will they? more inportantly will the traditional sites be willing to do the extra work to maintain the list?09/23/2014 - 9:02am
E. Zachary KnightSo how will it reduce the power of the traditional games press? They can create curated stores too.09/23/2014 - 8:39am
Matthew WilsonI think its a good thing, but it does mean traditional games press will have less power than ever before. To be fair most of the gaming press were never big on pc gaming anyways.09/23/2014 - 8:33am
E. Zachary KnightMatthew, is that a bad or good thing?09/23/2014 - 7:43am
MechaTama31When you say "youtuber", I picture some sort of customizable potato...09/22/2014 - 10:48pm
Matthew Wilsonthis change will only give youtubers more power.09/22/2014 - 9:54pm
prh99Steam has added a curator system. You can follow your favorites and see their recommendations http://store.steampowered.com/curators/09/22/2014 - 9:07pm
MaskedPixelantePlus there's the whole "we don't use accounts" thing that means if you lose your 3DS and have to get a new one, you have to deal with Nintendo customer service to get your downloads back instead of, you know, logging in and downloading them.09/22/2014 - 8:39pm
MonteIndeed. Their wallet system, the lack of sales, applying tax, the lack of price cuts, the eshop is pretty terrible. Only use it for indie games.09/22/2014 - 8:29pm
Andrew EisenThat's the one I'm eyeballing. Really dug the demo. Didn't care as much for EOIV though.09/22/2014 - 8:19pm
MaskedPixelanteOoh, an Atlus sale, it must be a day that ends in "y". I'd much rather get physical 3DS games because of Nintendo's outdated digital distribution policies, but EOU is near impossible to find anywhere nowadays... conflicted.09/22/2014 - 7:48pm
Andrew EisenOooh, Atlus sale in the 3DS eShop. I might have to bust open my piggy bank. http://www.siliconera.com/2014/09/22/shin-megami-tensei-iv-atlus-games-sale/09/22/2014 - 7:21pm
Matthew Wilsonhttp://www.pcgamer.com/2014/09/23/steam-update/ steam finally adds content Curation. I like that the user can pick which peoples recommendations they want to see.09/22/2014 - 7:16pm
MaskedPixelanteNintendo put three dual-gendered characters in Smash Bros 4.09/22/2014 - 7:13pm
 

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