http://www.dsogaming.com/news/piracy-actually-increases-legitimate-sales-of-video-games-according-to-eu-commisions-report/

Now here is something really interesting. EU Commission’s report on the effect of piracy on the legitimate sales of video-games has found that piracy can actually benefit publishers. According to the report, piracy increases video-games sales by 24%. 

This positive effect of illegal downloads and streams on the sales of games may be explained – as the report reads – by the industry being successful in converting illegal users to paying users.

“For games, the estimated effect of illegal online transactions on sales is positive – implying that illegal consumption leads to increased legal consumption. This positive effect of illegal downloads and streams on the sales of games may be explained by the industry being successful in converting illegal users to paying users. Tactics used by the industry include, for example, offering gameplay with extra bonuses or extra levels if consumers pay.”  

Personal take: We don't know the exact methodology used here but basic logic already dictates that piracy doesn't decrease sales in a significant margin. I think this is probably mostly true for the more expensive games and maybe less for cheaper Indie games.

While this is not advocating piracy it shows that there are ways for developers to make people pay even without oppressive DRM. And it also shows that piracy decreases with increasing attractive offers. Basically if you make a good game that's fun on its own and give people an easy way to pay for additional content they actually want, people will pay. Even pirates.

The results also show that games are an entirely different beast from movies and music. Though I am pretty sure that illegal movie and music downloads lead to significantly increased merchandise sales which might not have been respected in their calculation.

Win for us PC ga- I mean Pirates! 

Ka-pi96 said: Literally just for games though? Seems a bit odd doesn't it?

Doesn't seem odd at all when you consider that games can be monetized after the initial purchase while stupid media like books, films and music cannot.

I agree. How many people have pirated a game just to give an IP/genre they didn't know a chance, only to become fans of said IP/genre and purchase a copule of games after? Digital media and frequent sales allows to improve the main point of contingeance here: prices.

It makes sense a pirated game can still make money. If someone pirates it and then streams it,. Making it wider known, for example.

I kinda doubt popular streamers use pirated games. But they certainly might convince some pirates in their audience to buy the game so they can play online with them.

I can think of a whole bunch of games I only bought because I pirated the predecessors back when I was in school and had no money whatsoever.

Me too. I did pirate quite a few games back when I had no money. Games that I wouldn't have been able to buy anyway. Since then I have bought most of the good ones. Not even to play them but to give some support back to the developers.

vivster said: Ka-pi96 said: Literally just for games though? Seems a bit odd doesn't it? Doesn't seem odd at all when you consider that games can be monetized after the initial purchase while stupid media like books, films and music cannot.

I remember a study, that showed advertising effects through piracy for music and movies. Basically you heard a copied song and liked it and bought the album The study I remember said that bigger releases had more losses through piracy, while smaller and less known releases profited through the advertisement (you never heard the song in radio but got it from a P2P-exchange).

Same here. The poll (pirates are scum) reminds me of a popular pirated game back then. I bought Monkey Island multiple times since then.