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[tenchir]

http://www.gamesindustry.biz/content_page.php?section_name=pub&aid=3756

A new study carried out by the Business Software Alliance and IDC Global Software has concluded that 36 per cent of all software used around the world in 2003 was pirated - representing some $29 billion market value.

The worth of the global software market, counting piracy, was estimated at $80 billion for the year, of which only $51 billion was paid for - with the highest rates of piracy being in Eastern Europe (71 per cent), Latin America (63 per cent), the Middle East and Africa (56 per cent) and Asia Pacific (53 per cent).

Only western Europe and North America had piracy rates below half, with the figures tagged at 36 per cent and 23 per cent respectively for those territories; while unsurprisingly, China and Vietnam had the highest piracy rates of any individual nations, at 92 per cent.

The study, despite covering all areas of software, still has relevance for the games industry as it should help to highlight the global areas where piracy is most endemic. However, the methodology of the study does artificially inflate the piracy rate, as it fails to take into account the use of pirated software where software would not be purchased even if no pirate version was available - as is believed to be the case with much game and application software piracy.

Ouch.

 

[bishoptl]

Time for Bush to invade China and Vietnam.

 

[G4life98]

i love it when these companies quote these numbers for phantom sales they might have possibly had if there were no piracy.

its always good for a laugh

 

[tenchir]

It's still piracy no matter how you looked at it, I should know. What would you say if you get caught pirating? "I didn't really steal those games, I wasn't even interested in buying them in the first place!!".

 

[Marty Chinn]

I've always hated piracy figures myself for the same very reason. Just because it's copied doesn't mean it would have been bought.

 

[Cimarron]

I've always hated piracy figures myself for the same very reason. Just because it's copied doesn't mean it would have been bought.

Agreed. Cry me a river CEO and stockholders...

 

[Studs Ramrod]

A new study carried out by the Business Software Alliance and IDC Global Software has concluded that 36 per cent of all software used around the world in 2003 was pirated - representing some $29 billion market value.

The worth of the global software market, counting piracy, was estimated at $80 billion for the year, of which only $51 billion was paid for - with the highest rates of piracy being in Eastern Europe (71 per cent), Latin America (63 per cent), the Middle East and Africa (56 per cent) and Asia Pacific (53 per cent).

Only western Europe and North America had piracy rates below half, with the figures tagged at 36 per cent and 23 per cent respectively for those territories; while unsurprisingly, China and Vietnam had the highest piracy rates of any individual nations, at 92 per cent.

The study, despite covering all areas of software, still has relevance for the games industry as it should help to highlight the global areas where piracy is most endemic. However, the methodology of the study does artificially inflate the piracy rate, as it fails to take into account the use of pirated software where software would not be purchased even if no pirate version was available - as is believed to be the case with much game and application software piracy.

So.

 

[Marty Chinn]

I just heard a report on this issue, and they said the study actually indicates the biggest source of piracy is from businesses who have more software installed than they have licensed keys for.

 

[relentlessflame]

I just heard a report on this issue, and they said the study actually indicates the biggest source of piracy is from businesses who have more software installed than they have licensed keys for.

Absolutely, and the ones that are pirated the most are the ones that (un-coincidentally) sell the most: Windows and Office. Not to go too far off-topic, but I can't even begin to count all the business I know that are violating their Microsoft license agreements. The biggest reason I've noticed is pressure from the CFO to cut IT costs; once you've started down the slippery slope of not having everything fully licensed, it's very difficult and expensive to get back on track. The amount of money "lost" to piracy in the videogame industry is small beans when compared to the amount Microsoft "loses" each year to piracy. That being said, I put lost in quotes because I also don't think you can really measure potential sales as being definite loses, for the reasons mentioned above by other posters.

 

[Mr_Furious]

There is absolutely no accurate way to track money lost caused by piracy. Any given number is complete bullshit pulled out of thin air.

 

[The Promised One]

I think these numbers are heavily inflated, and pretty much pure BS. Supposedly, they're losing more money from piracy, than they're making, while the vast majority of people who play videogames don't pirate a things, and of those that do, 90% of them only do it with only SNES and Genesis type titles, that don't cost the companies a single cent of profit.

Companies make money off their new platforms, and the amount of people pirating the current gen systems (sans the GBA of course) is almost non-existent. The GBA is the only current gen system out, that enough people pirate that it can even be considered a percentage. Even so, it's an extremely small percentage, and those that do, usually buy the games they enjoy.