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Thursday, September 11, 2008
 
Is DRM Killing PC Gaming?
The hoopla about Spore is, on the face of it, looking like big deal - there's a massive backlash against the DRM restrictions, particularly in the negative user reviews (many of whom have not even played the game) on Amazon.com. Well, that, and a lot of hardcore gamers are finding that after all the hype and expectation around it for the last three years, it's not really knocking their socks off.

But the arguments are raging around the DRM. Now, as far as I know, except for what basically amounts to online picketing at Amazon.com, the real effect is nothing. Sales may be going just fine. A thousand angry protesters (myself included - I've refused to buy a few PC games now because of DRM issues) may not amount to a hill of beans with hundreds of thousands - if not a million - others buy the game. Or if just a thousand and one would-be-pirates find themselves actually going legit because of the DRM. As far as I know, 99.99% of the gamer public doesn't give a crap about installing a DRMed game - unless it doesn't work.

There has been some impassioned defenses of DRM from people I respect - including articles at Bruce On Games and at GameDevBlog. And of course, there has been some vehement opposition - including contentions that DRM leads to piracy.

I tend to lean in the latter direction, myself. I think it's only a matter of time. If consumers (I say that instead of "customers" - implying that they are and remain potential customers) can get both a superior product and a superior price elsewhere, with the only real downside being an aching conscience... well, it's only a matter of time before we as a society learn to supress that last bit.

People faced a lot more risk and downside acquiring alcohol during Prohibition in the U.S., and we all know how well that worked out. Once our society has adopted filesharing services as part of the information culture as much as email and YouTube, DRM and traditional copy protection as we know it will fail as anything more than a speedbump to piracy.

Therefore, PC gaming, as we know it, is doomed. The pirates will win that battle. However, I feel the future is bright for PC gaming - and I'm not talking about it becoming a ghetto of MMOs, either.

I started getting serious about investing at the beginning of the year. One of the things that has stood out to me about successful investors and entrepreneurs I've talked to and read is that they do not try to impose their will upon the market. That's a losing battle. Instead, they let the markets move them. The successful ones I've met know how to make money when their market is going up, going down, or going sideways. Anticipating the change ahead of time can be rough, but there's a mantra that "the trend is your friend." Fighting it is a loser's game.

And I think we have a clear trend appearing here. Trying to fight it - which is exactly what DRM does - is doomed to failure, and is just a black hole of investment for a business and a pain in the butt for consumers. At best, it has been a mediocre stopgap to deal with the change in times. But we need to look past that.

The key to overcoming the madness is that the version of games available on the torrents and pirate sites are - as I said - a "superior product." I remember, many years ago, when I found myself forced to download a crack for Wing Commander when I couldn't find my documentation one day. I had to go to a shady BBS site (yes, we were using BBS and FTP sites back then - the World Wide Web was still in its infancy. Hard to believe, huh?) and download a crack. And then... gaming bliss! I'd never realized what a pain in the butt the documentation look-up was until I didn't have to do it anymore.

Fortunately, even DRM (when it WORKS) isn't as onerous as document lookup or those awful code-wheels we had to put up with back in the day. But it was at that moment that I realized that the pirates were enjoying a superior product to the one I had purchased in the store - one that allowed them to jump right in and enjoy their game, every time.

It was an ugly revelation. And it remains true today.

I believe that the answer is providing a superior product. And I think it can be done with some of the same technology used to fuel modern DRM schemes. It's not the technology - it's the philosophy.

I think we need a lot less stick and a lot more carrot.

Sure - whatever updates you make to your game, and whatever freebies you provide to your customers that does NOT require them to be logged onto some online server in order to use them WILL be pirated. But - can you, as a game developer, make it far more convenient and easier to get a superior product through legitimate means than through hunting through dangerous warez downloads? Can you make it worth the player's while to actually go through what amounts to a seamless DRM validation check to get an improved experience, without holding a gun to their head and treating them like a criminal? Could you give your customers back the right to resell their game at a later date? Can you let them play their game without getting your permission each time?

Can you treat them as customers, and treat them like you really care about them being your customer?

Stardock is taking that approach, and it has worked out famously for them, with over 500,000 copies of Sins of a Solar Empire sold... what SHOULD have been a a "niche game" that "won't sell" on a "dead platform" that would never have been green-lit by a modern publisher. Oh, and it was DRM-free. But they make it worth your time to be a customer.

Now, I don't know if other publishers can repeat Stardock's exact approach with the same success. Their approach is actually part of their marketing. The "We're different!" rallying cry doesn't work so well when it is merely, "We're different, too, just like those other guys!" But I think Stardock's bold approach - and subsequent success - helps disprove the contention that "hard" DRM is necessary for PC gaming to survive.

In fact, I feel that it is partly to blame for stagnating its growth.

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Comments:
As someone who just made my first investment (100 shares of nintendo), I would be interested to hear about what investments you made once you started getting serious. Is it related to gaming/technology in any way?
 
The DRM doesn't work, In this case specifically, the game was out on the interwebs, cracked, DRM free, before it was out in the stores....

It's an old argument which you mentioned, but the DRM is only there on legitimate copies, it doesn't keep or even seem to impede pirates at all.

Personally if I decide to play the game, I'll be buying a copy AND downloading a cracked version...

I'm not going to be putting their DRM system on my computer, but if I decide to have the game I will be paying for it...
 
@Chrysophrase - A lot of people will do that. And that's admirable of you. I have been known to download other cracks for my games, too - ones I have legitimately purchased. I think that's kind of the issue though - why should we have to do that, and why are game companies still bothering? The genie is out of the bottle already, and as inventive as companies are about trying to get him back in, it ain't gonna happen. The focus has to change.

@anonymous - Nope, not one bit. In fact, as an investor, I'd be pretty shy of most gaming-related investments at this point. I've still got way too much money in tanking mutual funds, but I've been getting involved in real estate, hard money loans, a local PPM managed by some folks that I trust, and I've also been learning to trade options.

As far as going long stock right now, my opinion right now is to stay in cash. The market is just too volatile right now. Even investing in ETFs that short certain industries is pretty risky, because in some cases (like financials) there's just not much more room for them to go down... but they aren't getting back up again either!
 
I bought the game, and am enjoying it tremendously. Honestly, I'm far more irritated with EA's horrendous "customer service" than with the DRM. Admittedly I'm on a Mac, so it hasn't been obtrusive or obnoxious -- Spore and SecuROM both run inside a WINE bottle, where they do their thing without interfering with the OS.
 
It reminds me of the my not-so-handy, not-so-dandy dongle for Lightwave. I have to have it plugged in to use the software that I purchased and support. If the dongle, God forbid, breaks or gets shorted in a USB power backlash, I lose the ability to use it without ordering a replacement. The dongle makes me, a legitimate, licensed user, feel like a I'm the one Newtek is targeting...not the pirates that download and crack it with basic bin-patches.
 
Wow...absolutely brilliant article Jay. I whole-heartedly agree.

If only I could stop paying World of Warcraft now, I could go stimulate the PC market some more.
 
This only adds to the expence of the game, but why not have more feelies? Back in the olden days of computing, Infocom was famous for them, you would have things come in the box, that you couldn't pirate. Like a map, all real looking, of the fictional city you were exploring. Or a button saying 'Don't Panic' in large friendly letters. Or an 'actual' piece of currency from the game in question (zorkmids). For a later example ,I saw, (can't remember the game) a game that included an action figure of a character or monster from the game. So basically, don't treat your potential customers like potential criminals, or it will happen. And give them something a pirate can't have.
 
Preach on, brother Jay! =)

Re: Spore... meh; it's not nearly as cool as it was supposed to be. And for me, the DRM is just the final nail in the coffin lid.

@the occupant: Amen!!! They really should stop wasting money on DRM and at the very least give us a frickin' CD/DVD case (No, a paper/cardboard sleeve is NOT a case!) and a manual! Made out of paper, dammit! (This is all assuming, of course, that I don't DL the game off Steam or... some where else. But if I actually go to the store, I expect something in the box besides a disk and... air.) And NO, I should not have to buy the $80 "Collector's Edition" to get these things, either!
 
For $80 you get boxed air version in my country, and that is for PC. XBox and PS3 are around $100 :)
 
Copy protection has one real purpose, and that is to increase sales during the period immediately following the publishing. The interest in the game is by far highest then, and if you can delay it hitting the torrents by at least few days, it's definitely good. As a publisher I'd impose a complex copy protection on the game - DVD check is fine as long as it's onerous and time-consuming to crack - and after couple of weeks, when it no longer serves any purpose, include "crack" in the 1.01 patch. I'd also see to it that registered users can download their patches effortlessly and fast from official servers, and receive at least some additional content later. Extra powers, guns or whatever in multiplayer might be particularly nice incentive.

I certainly wouldn't do what's being done today, ie. keep hitting myself in face with hammer and scream that "Just watch it bastards, I can do this twice as hard if I need to!"
 
Um, somewhat off topic, but . . .
You're getting into *real estate*? Hope you know what you're doing. On the face of it, this wouldn't seem the best time. The slump/meltdown is far from over.
 
@PurpleGuy -

I hope so, too. My partners are very experienced in the business, fortunately. Prices are down, rents are up, and we're buying in a sector less impacted by the collapse for about $0.70 to $0.75 on the dollar of it's current sellable value. The houses are nicely cash-flowed, so we're making some money just sitting on them for 2-3 years if need be while the renters pay for them --- and we'd still make a profit even if they dropped another 20% in value and we were forced to sell for some reason.

That's the theory, anyway.

@Occupant: I miss those, too. :) In a digital distribution age, so I don't know if there's enough "value add" to justify the required extra cost, but that is TOTALLY the right kind of thinking to have here. I mean - really - how cool would it be if being a customer was practically worth bragging rights? That would be a company that really showed how it valued its customers.

I signed up with a brokerage at the beginning of the year who sent me a stuffed animal - their monkey mascot - even before I think I had even given them any money. You know, it was a dumb, silly thing - but I still have the monkey. They treat their customers very well in other areas too, but the end result is that I'm really, really happy doing business with them.

And I hate to keep bringing up Stardock, but there's a similar thing going on there. They are working hard to make their customers a *community* and they do seem to work hard to *give back* to that community.

As a result, I feel really, really good about the games I bought from them. Besides the fact the games rock. I wouldn't even consider trying to pirate their future releases.
 
@Daath, quote:
I'd also see to it that registered users can download their patches effortlessly and fast from official servers, and receive at least some additional content later. Extra powers, guns or whatever in multiplayer might be particularly nice incentive.

Absolutely! I would be forever loyal to a company that was like, "Hey, you bought our game, here are the patches and oh, here's a new level we made just for you." And actually, that's one reason why I've become a fan of Steam: Patches are completely automatic; it doesn't get more effortless than that.
 
two wrong don't make a right EA is trying to tell me that i don't own the game when I bought it!!!!!! There is just as much pircay on console and hand helds look at the psp!!!! You don't hear none of the console game devs saying any thing. You only hear the PC HATING GAMES DEVS SPEAK VERY LOUD AND CLEAR ABOUT PICARY ON THE PC!!!.

there is pircay on all gaming machines has anyone checked out the ds

http://kotaku.com/5044010/capcom-explain-r4-lawsuit-participation

it's just that pc gets pick on by big companies.

http://news.softpedia.com/news/Weekend-Reading-Fighting-Against-Piracy-91313.shtml

http://www.edge-online.com/news/activision-sues-alleged-cod-pirate

here are links to prove it.
this is a new link people should read

http://www.extremetech.com/article2/0,2845,2330378,00.asp
 
Companies using excessive DRM are showing off that they care less about their paying customers than they do about money.

Long term gamers are getting savvy, and finally voting with their wallets. There is a short but growing list of single player games such as Mass Effect, Bioshock, Alone in the Dark, Crysis Warhead, Stalker Clear Sky that I have not bought because of the antagonistic DRM bullied onto paying customers against customers wishes and best interests.

I have drafter a PC Gamers DRM Charter against which people can measure a games DRM before makign a purchase, if they want to avoid future pain. The DRM Charter can be found here.

We gamers need to spread the word. For as long as people are unaware what the likes of EA are doing with their evil DRM schemes, and the low regard they show for their customers rights, nasty DRM will be sneaked in at every opportunity and used against honest people.

Don't believe the BS about DRM keeping honest people honest. That is like saying it is OK to put people on the rack in order to keep tall people tall!

... Talkjack
 
I believe DRM is killing the industry. I am strongly opposed to DRM in games and have actively voiced my disapproval of it to many developers i have purchased from. Read my blog for more info and please comment. If you have problems on my blog e-mail me at full_metal@live.com.au
 
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