Xi said:
I will keep this simple. I agree with many of your points, but you've still failed to show how piracy will allow for a distribution model that can recoup the development costs for someone who devotes time and energy into a project.
It is not something I have attempted, because presenting a concrete idea now, with how things are at this very moment, anything I would say
would be unrealistic. There are brighter minds out there than I, and if they managed to use the television to make money, despite the criticism it got in the beginning, and managed to use the vcr to make money, again despite initial criticism, and managed to use the computer platform to make money, despite the criticism it recieved for unrestricted copying of data, someone will certainly figure out a way of using bittorent and pirated releases in a way that will allow for economical growth and market stability.
Xi said:
Piracy removes the incentive to create things in an economical society. Economics aside, and if it was all just a passion of love, then yes piracy would be great(but it wouldn't be piracy anymore)! This is not how things work though, and you seem to be more idealistic than many of my moral preachings on the subject.
I probably sound idealistic because I'm saying that there is more to it than just swagging free stuff from a website; there are several layers to piracy, and these are never regularly presented in an argument, and some of them do not apply to what we currently have -- an old system struggling with a new system. To say that there will eventually be stability is not only an obvious statement to make, but it is at the same time an idealistic statement, simply because, while it has always been like this for as long as we have recorded our history, good conquering evil cannot be reasonably guaranteed. I'm not going to try dodging bullets through the whole post, I'll eventually present some sort of example of an economic model as I invision it. Just go along with me for now.
Xi said:
Also, the piracy distribution model gives 100% power to the consumer. The issue with this is that it takes all investment incentive away from the creator.
Not really. It is only in the old system that there is an actual boundry between consumer and creator, investor and profiteer; the system that pirates are pushing for fuses all these concepts into one, and as such there is no distinction. A creator can invest a sum into his creation, alongside of consumers and pure investors in an open market not constricted by corporate rule. The only uncertainty, but this has always been the case, is getting back the exact ammount or more of what you have invested into the project.
Xi said:
Even if something is good it does not mean it can recoup it's development costs, especially in a distribution system that puts 100% of the control in the hands of the consumer.
Considering that we've seen some extremely talented development houses fall like dominoes over the years, under the current corporate rule, it's far too apparent that our current distribution system can make no such promises either. We've often surmised, their fall came due to bad advices made by the marketting departement, and quick 'cash-cow' projects to reclaim lost profits from such lackluster projects and then we see the pattern forming; a downward spiral. This, at least, would be impossible in a system where financing was in the hands of the consumers, because consumers would never request a lackluster game to make up for lost investments; they would simply stop investing if they considered that the company had nothing more to offer.
Xi said:
You seem to think that enough people will keep buying video games, music, and movies if these people get to decide after fully using the product. This is naive and is a slippery slope of a fallacy.
I believe that if there was a possibility to back Troika in making that post apoc game they raved about before falling apart, a big enough number of people would put money in towards the project, to attract the attention of bigger investors and put the game in to development. If the end result was decently priced, and distributed over a free system, meaning that it would cost Troika nothing to distribute it, not forcing it into any unreasonable deadline (this could be agreed upon at the start of budget gathering) they could stand to make millions in cash with only 1-2$ down p. distributed copy.
We might be talking about 7 million downloads as a low estimate, with 1/3 paying on the spot, 1/3 paying after playing and 1/3 paying simply by sharing (bandwidth costs too y'know). So, an enforced sharing system like that of eMule on the torrent client, for those who do not wish to pay a nickle for their game, would in fact pay for the games distribution, and saying that half of these 'no-longer-freeloaders' liked the game, means they might make a generous/not so genorous donation at the end 50/50. 10-15$ million would be a low, I'm talking watermark low, estimate. Now remove a good 50-60% if there were bulk investors (which isn't necessarily the case), and we have a decent sum left for the developers.
Obviously, I'm basing these estimates on actual pirate downloads of current popular games, so I might be off to either side, but as an average I'd say this would work. I'm also rounding numbers off to a very low, low end, so in fact the figures might be alot more positive than what is shown here.
Xi said:
You'd just get everyone saying, "Someone else will purchase and support this developer, so I don't have to."
That is the current trend in piracy, simply because all major titles come from major corporations who have big vaults that won't be depleted for a long while (at least, that would be the general assumption; god only knows there have been surprises before). If
you were the one backing the company from the get-go, you would have a personal stake in it's success, and everyone around you would be affected as well.
To enjoy a game, knowing that your support can actually mean life & death of the company that made it, and either the continuation or end of similar products, will have an impact on a greater majority of people than you or I would be able to estimate at this time, simply because that has never been the case; it has never been our personal decision to leave a company in the dry or water it with the substance of life, and this is not something we can estimate within reason.
The idea that development houses have 'fallen' because no one bought their games is slightly twisted, as it is in fact publishers and investors that have pulled in a debt from the company when the cash return failed to reach the estimate, and in so doing bankrupted the company. On a private market investments have little to no insurance on return, and while it is a risk it is a risk that can pay off, which is why people take it. So, in the revised game market under this new distribution policy, all investments would be final just like in the private market, and the return would be in the percentage of total revenue; so a hands down investment of 300 000 in a budget of 600 000 would yield no more than 50 percent, even if the revenue was a meagre 500 000. It would certainly make it a bit harder for investors to trust that specific company, but that's just the way things are, and the developers would get to keep 50 % of the initial budget, which is hardly standard procedure for big game projects.
Xi said:
Just because a handful of people actually have some type of ethical approach to piracy doesn't mean that the majority would. I would not expect the minority to be able to recoup development costs in this case. Again, your piracy model fails at this, and there is no sign that the industry is moving away from DRM any time soon.
Saying that it is a handful of people is slightly misrepresenting, but as we have no actual figures I can do nothing but allow it. Even so, you have to remember that any "ethical" approach to piracy, would, in our current situation mean, cooperation with the system which these/we "ethical" people find obsolete, as no other system has so far been as firmly established. It does nothing but misrepresent our intentions to support it, and it costs us more money than it should to do so, and as such it would be no surprise to me if the figure of "ethical" pirates was a minority at 1/3 or even 1/5 in a worst case scenario. This is of course
at this time, with no rewards for being a honest and legal consumer.
As for DRM, there's not much for me to say about it. Apparently it does near to nothing, and so bringing it up is something of a mystery. Something that simply costs money and has no actual use or purpoise can't logically stay around for too long a time. When the profits of distribution companies start to decrease, and cuts become necessary to maintain the facade, it will be thrown out together with other useless artifacts of the past.
Xi said:
Also like I said before, with large investment projects, where the quality of the project has more potential to be good, the incentive is absolutely gone. The more you invest the higher the risk.
But if you think about it it's actually a self-regulating system. The higher the public investment = the higher the public interest in the project = the higher potential bulk investment made = the bigger ammount of consumers = the greater potential revenue.
No system today can provide more than "potential" or "estimated" revenue, and the failsafe for the investors is to pull money out of the company, which is not particularly fair, so to argue that a system based around free distribution wouldn't work because there are no guarantees for investors, that the risks are too high and profit margins too low, and that high budget games wouldn't work because there would be no player interest, is pretty much going against basic math; in fact, it's almost like saying that the current system can't work, or even that marketting has no place outside of fiction.
Xi said:
This is back assward in terms of how the concept of investment works. I will admit that the current system is failing, hell I haven't bought a new game in ages, but there are still a few gems being produced every now and again.
The current investment system is "back assward" enough apparently, because you're (and not alone, some marketting geniouses haven't figured this one out yet) expecting it to deliver a proportional cut on increased investment, and guarantees that there will be no drawbacks, which is completely unrealistic. Smart companies generally know this, and they in fact count on it; I'm thinking you're just a bit confused not to pick up on it.
There is a top to the investment / return curve, and it is below the budget of the current "blockbuster" movies, simply because pumping an extra 200 million dollars into a movie does not mean more people will see it or that the revenues will somehow go up or that you can up the price to guarantee a return on your investment.
Now, the way they figure out what the top investment for a specific movie is, is they call up a number of graph companies (those faggots who bother you on the net or call you up in the middle of the night and ask strange questions or gather stats from tv-ratings) to get the feel for what the market in general wants out of entertainment (getting your hands on this 'free statistical information' actually costs a shitload of money compared to the value of the information), and then they make a prediction of how this graph will look 2 years from now and then they have the roughest of estimates of how many people will go and see Die Hard 5 in the year 2011.
These stats are always off, simply because they always point upwards due to a loophole wherein the entertainment industry forces growth upon itself by relying on statistics generated mostly by the entertainment industry in the first placed, and by the time they actually get to the statistical pit of dismay, which is what we're really heading for, the entertainment industry as we know it will have collapsed upon itself by making the most expensive turd in the history of man without even the most remote ability to cover it's expenses.
Now, maybe someone figured this one out, because some recent successful movies have had a tighter budget, but even so it's painfully stupid to rely on misrepresenting stats for investments, which always goes above the mark for what is needed to maximize profits, when this particular market could in fact rely on direct investments from consumers which would then give a perfect representation of the interest and allow for optimal investment opportunities.
Xi said:
You seem to think that a bunch of modders or open source developers will be able to take the complexity of game design and create titles at the current quality level. Not saying these games are the best, but they do offer a certain quality and of course can only get better. How does indie development make them better than what they are now, and especially when indie developers already struggle to recoup costs?
Again, what we have is a failed attempt from you to bridge a potential future system for distribution and marketting to a current, canonized system which is becoming obsolete. Obviously having
both systems in place won't work. Does that answer your question?
Xi said:
Anyway, your argument for a revolution in distribution is ridiculous because it does not protect the original creator, at all.
Compared to having a big company owning the rights to something one of their more prominent developers did, and then buttfucking the intellectual property to grab some more greens? I don't know, I mean, having a big group of investors that aren't actually in it for the money, but care about the product because it is financed with their money and made for them as consumers, may actually protect the original creators from interfearing hands better than the corporate model.
I haven't adressed issues such as plagiarism, simply because I have this nagging suspicion that I don't have to, and that it'll solve itself. If two or more companies want to gather investors for a project that involves the exact, same intellectual property, it would hardly benefit anyone in the end. Either one group of developers get's the broadest support in the matter and the others simply fuck off, which is something they would have seen coming miles away, or the developers realize pool their resources and work together, thus allowing the project to have a bigger scope. Also, before you ask, I think it
is fair that ideas become a shared commodity, above or beyond the law of man; people who "dream up" the "best game of all times" and have no actual ability of materializing their ideas, beyond flaunting them in public, have no business monopolizing such concepts --
that would be unfair.
Maybe you believe that having legislated ownership over an idea or concept (such as a 50's retro future post apoc setting, for instance) is the way it should be, the only way it would work. I personally think it's impossible to own an idea, apart from personal interpretation of a concept which is something you may never be able to get across to another person however hard you try; but a basic premise is not something anyone can own. As soon as it is made public, in any way or form, it belongs to everyone.
Xi said:
This is the concept of the piracy model in a nutshell:
Invest X amount of dollars to create something. Then set the created product on the side of the road with a for sale sign but absolutely no employees to keep an eye on things. Use a tub to collect money, but let the customers decide if they want to pay for the product or take it for free. Then add zero consequence for the people who take the product for free.
Pretty naive to think this will work. In fact, it's not idealistic it's a romantic idea because it will never work.
A potential product is presented, and initial investments are made by parties interested in the product. Investors with interest in making money (bulk investors) do their math of return potential, and invest in the product appropriately. A completed product is released publically through a free system of distribution. The initial investors, who are in effect consumers responsible for the product, support their decision and the developers they have hired by putting down a small payment upon download; any consumers interested in doing so on download are naturally also allowed to do so.
"Freeloaders" are allowed to partake of the product, by a system of forced seeding that makes up for their lack of paying, and generally moves their role from pure consumers to distributors. Upon reviewing the product in question, a percentage of these "freeloaders" donate a fee they themselves deem reasonable for the quality of the product recieved.
The bulk investors remove the percentage that applies to the initial investment made by them, the rest of the money belongs to the developers. A quality product = a higher consumer interest = a higher end revenue = a higher probability of interest in upcoming projects = theoretically a higher quality product.
It is possible that such a system would work as is, but I am, as I initially said, not the brightest mind or the sharpest tool; there may be far better alternatives resonating from the same initial ideas, created by people with a better grasp of the inner workings of a marketting system than those I have. It is also possible that all this system needs is a more fleshed out core, or the incorporation of some specific laws, but, again, there is no certainty of this since it has not been applicable so far.
Out of honesty, I emplore that you neither jump to the conclusion that a free distribution system is an invalid theorem, or that it is applicable as is, on the basis of having read my contribution to the subject. I've simply thrown it out there as a testament to my conviction that a system based on the premise is not only possible, but an advancement over the current system, and an upcoming reality. Remember: it is, in fact, by far easier to pick away at established doctrines, than invent your own ones.
Xi said:
I had to respond to this too! But hackers aren't physically there so they aren't actually breaking in right?
I imagined that someone would pick up on that, and almost thought of including an explanation to why I wrote that right next to the statement itself. As I have already compared piracy to physically copying a book / recieving copies from someone who does so, without having any moral qualms, due to the fact that the "victims" in this particular case aren't actually victims but businesses that become obsolete through the act of copying, the comparison to intrusion is completely removed.
In fact, I have always steered even the various analogies that you (not you personally) have come up with in this thread, away from intrusion or break-in's, simply because there is no such attribute to piracy. Some 2-5% of game releases in the pirate community is leaked data of unfinished games, but it is not acquired by breaking in to servers; in most cases it is attributed to the sloppyness of developers with their promotional copies.
I think the comparison to hacking and "lack of physical bodies" asf, is more easily attributed to the other defendants of piracy, who simply rely on saying that piracy is not theft, because it is digital. This has never been a major part of my arguments, and thus no such comparison can be drawn.
Xi said:
Do you think wow would have less user accounts if you could pirate it and not pay the monthly fee? Fuck yes it would, stop being naive.
You always could pirate it and not pay the monthly fee, basically since the release. One could perhaps entertain the notion that fans of the Warcraft universe who were uncertain wether they would enjoy it as an mmo, first started on an emulated server to experience the prolonged effects of the gameplay mechanics, before venturing into the addiction of official blizzard servers, and that this is an attribute to WoW's popularity, much like private servers were an attribute to UO's popularity. As we have no figures to prove nor deny such a feat, it is again an open debate.
Xi said:
Fuck I just realized the show stopper of the Pirate argument. If piracy was going to revolutionize the "Industry" it would have already happened because nothing is stopping the piracy model from working as things are currently.
That is to say that both systems in place, in a constant competition with each other, is the system that pirates were aiming to achieve, and that this is the final stop for piracy and the end of the line. Somehow I believe it is a gradual process of constant change, rather than definitive stagnation, simply because there is no end to refinement in a universe that makes any bit of sense.
Xi said:
The piracy model can work alongside the traditional publisher model because nothing is stopping people from creating great games and giving them out for free but allowing them to give donations if wanted. Pathetic!
Except that if you one day found out that the secret to living another extra 20 years above average, was not wearing any pants in public, you'd wait for it to become common practice before doing so. Normality is established by a fall-in behavour where the majority decides what, in fact, is normal. To make changes to an established model, and to try something new, you'd either be working against the norm, and failing 9 times out of 10, or waiting for the current to switch in your direction.
As I have previously said, music has taken the leap to free releases and pay-what-you-will funding, and has been reported as a failure by mainstream media, while the bands themselves reported quite the opposite. It remains to be seen which opinion becomes the norm and prevails, but so far I think the media is pulling at the longer straw."]
Xi said:
I will keep this simple. I agree with many of your points, but you've still failed to show how piracy will allow for a distribution model that can recoup the development costs for someone who devotes time and energy into a project.
It is not something I have attempted, because presenting a concrete idea now, with how things are at this very moment, anything I would say
would be unrealistic. There are brighter minds out there than I, and if they managed to use the television to make money, despite the criticism it got in the beginning, and managed to use the vcr to make money, again despite initial criticism, and managed to use the computer platform to make money, despite the criticism it recieved for unrestricted copying of data, someone will certainly figure out a way of using bittorent and pirated releases in a way that will allow for economical growth and market stability.
Xi said:
Piracy removes the incentive to create things in an economical society. Economics aside, and if it was all just a passion of love, then yes piracy would be great(but it wouldn't be piracy anymore)! This is not how things work though, and you seem to be more idealistic than many of my moral preachings on the subject.
I probably sound idealistic because I'm saying that there is more to it than just swagging free stuff from a website; there are several layers to piracy, and these are never regularly presented in an argument, and some of them do not apply to what we currently have -- an old system struggling with a new system. To say that there will eventually be stability is not only an obvious statement to make, but it is at the same time an idealistic statement, simply because, while it has always been like this for as long as we have recorded our history, good conquering evil cannot be reasonably guaranteed. I'm not going to try dodging bullets through the whole post, I'll eventually present some sort of example of an economic model as I invision it. Just go along with me for now.
Xi said:
Also, the piracy distribution model gives 100% power to the consumer. The issue with this is that it takes all investment incentive away from the creator.
Not really. It is only in the old system that there is an actual boundry between consumer and creator, investor and profiteer; the system that pirates are pushing for fuses all these concepts into one, and as such there is no distinction. A creator can invest a sum into his creation, alongside of consumers and pure investors in an open market not constricted by corporate rule. The only uncertainty, but this has always been the case, is getting back the exact ammount or more of what you have invested into the project.
Xi said:
Even if something is good it does not mean it can recoup it's development costs, especially in a distribution system that puts 100% of the control in the hands of the consumer.
Considering that we've seen some extremely talented development houses fall like dominoes over the years, under the current corporate rule, it's far too apparent that our current distribution system can make no such promises either. We've often surmised, their fall came due to bad advices made by the marketting departement, and quick 'cash-cow' projects to reclaim lost profits from such lackluster projects and then we see the pattern forming; a downward spiral. This, at least, would be impossible in a system where financing was in the hands of the consumers, because consumers would never request a lackluster game to make up for lost investments; they would simply stop investing if they considered that the company had nothing more to offer.
Xi said:
You seem to think that enough people will keep buying video games, music, and movies if these people get to decide after fully using the product. This is naive and is a slippery slope of a fallacy.
I believe that if there was a possibility to back Troika in making that post apoc game they raved about before falling apart, a big enough number of people would put money in towards the project, to attract the attention of bigger investors and put the game in to development. If the end result was decently priced, and distributed over a free system, meaning that it would cost Troika nothing to distribute it, not forcing it into any unreasonable deadline (this could be agreed upon at the start of budget gathering) they could stand to make millions in cash with only 1-2$ down p. distributed copy.
We might be talking about 7 million downloads as a low estimate, with 1/3 paying on the spot, 1/3 paying after playing and 1/3 paying simply by sharing (bandwidth costs too y'know). So, an enforced sharing system like that of eMule on the torrent client, for those who do not wish to pay a nickle for their game, would in fact pay for the games distribution, and saying that half of these 'no-longer-freeloaders' liked the game, means they might make a generous/not so genorous donation at the end 50/50. 10-15$ million would be a low, I'm talking watermark low, estimate. Now remove a good 50-60% if there were bulk investors (which isn't necessarily the case), and we have a decent sum left for the developers.
Obviously, I'm basing these estimates on actual pirate downloads of current popular games, so I might be off to either side, but as an average I'd say this would work. I'm also rounding numbers off to a very low, low end, so in fact the figures might be alot more positive than what is shown here.
Xi said:
You'd just get everyone saying, "Someone else will purchase and support this developer, so I don't have to."
That is the current trend in piracy, simply because all major titles come from major corporations who have big vaults that won't be depleted for a long while (at least, that would be the general assumption; god only knows there have been surprises before). If
you were the one backing the company from the get-go, you would have a personal stake in it's success, and everyone around you would be affected as well.
To enjoy a game, knowing that your support can actually mean life & death of the company that made it, and either the continuation or end of similar products, will have an impact on a greater majority of people than you or I would be able to estimate at this time, simply because that has never been the case; it has never been our personal decision to leave a company in the dry or water it with the substance of life, and this is not something we can estimate within reason.
The idea that development houses have 'fallen' because no one bought their games is slightly twisted, as it is in fact publishers and investors that have pulled in a debt from the company when the cash return failed to reach the estimate, and in so doing bankrupted the company. On a private market investments have little to no insurance on return, and while it is a risk it is a risk that can pay off, which is why people take it. So, in the revised game market under this new distribution policy, all investments would be final just like in the private market, and the return would be in the percentage of total revenue; so a hands down investment of 300 000 in a budget of 600 000 would yield no more than 50 percent, even if the revenue was a meagre 500 000. It would certainly make it a bit harder for investors to trust that specific company, but that's just the way things are, and the developers would get to keep 50 % of the initial budget, which is hardly standard procedure for big game projects.
Xi said:
Just because a handful of people actually have some type of ethical approach to piracy doesn't mean that the majority would. I would not expect the minority to be able to recoup development costs in this case. Again, your piracy model fails at this, and there is no sign that the industry is moving away from DRM any time soon.
Saying that it is a handful of people is slightly misrepresenting, but as we have no actual figures I can do nothing but allow it. Even so, you have to remember that any "ethical" approach to piracy, would, in our current situation mean, cooperation with the system which these/we "ethical" people find obsolete, as no other system has so far been as firmly established. It does nothing but misrepresent our intentions to support it, and it costs us more money than it should to do so, and as such it would be no surprise to me if the figure of "ethical" pirates was a minority at 1/3 or even 1/5 in a worst case scenario. This is of course
at this time, with no rewards for being a honest and legal consumer.
As for DRM, there's not much for me to say about it. Apparently it does near to nothing, and so bringing it up is something of a mystery. Something that simply costs money and has no actual use or purpoise can't logically stay around for too long a time. When the profits of distribution companies start to decrease, and cuts become necessary to maintain the facade, it will be thrown out together with other useless artifacts of the past.
Xi said:
Also like I said before, with large investment projects, where the quality of the project has more potential to be good, the incentive is absolutely gone. The more you invest the higher the risk.
But if you think about it it's actually a self-regulating system. The higher the public investment = the higher the public interest in the project = the higher potential bulk investment made = the bigger ammount of consumers = the greater potential revenue.
No system today can provide more than "potential" or "estimated" revenue, and the failsafe for the investors is to pull money out of the company, which is not particularly fair, so to argue that a system based around free distribution wouldn't work because there are no guarantees for investors, that the risks are too high and profit margins too low, and that high budget games wouldn't work because there would be no player interest, is pretty much going against basic math; in fact, it's almost like saying that the current system can't work, or even that marketting has no place outside of fiction.
Xi said:
This is back assward in terms of how the concept of investment works. I will admit that the current system is failing, hell I haven't bought a new game in ages, but there are still a few gems being produced every now and again.
The current investment system is "back assward" enough apparently, because you're (and not alone, some marketting geniouses haven't figured this one out yet) expecting it to deliver a proportional cut on increased investment, and guarantees that there will be no drawbacks, which is completely unrealistic. Smart companies generally know this, and they in fact count on it; I'm thinking you're just a bit confused not to pick up on it.
There is a top to the investment / return curve, and it is below the budget of the current "blockbuster" movies, simply because pumping an extra 200 million dollars into a movie does not mean more people will see it or that the revenues will somehow go up or that you can up the price to guarantee a return on your investment.
Now, the way they figure out what the top investment for a specific movie is, is they call up a number of graph companies (those faggots who bother you on the net or call you up in the middle of the night and ask strange questions or gather stats from tv-ratings) to get the feel for what the market in general wants out of entertainment (getting your hands on this 'free statistical information' actually costs a shitload of money compared to the value of the information), and then they make a prediction of how this graph will look 2 years from now and then they have the roughest of estimates of how many people will go and see Die Hard 5 in the year 2011.
These stats are always off, simply because they always point upwards due to a loophole wherein the entertainment industry forces growth upon itself by relying on statistics generated mostly by the entertainment industry in the first placed, and by the time they actually get to the statistical pit of dismay, which is what we're really heading for, the entertainment industry as we know it will have collapsed upon itself by making the most expensive turd in the history of man without even the most remote ability to cover it's expenses.
Now, maybe someone figured this one out, because some recent successful movies have had a tighter budget, but even so it's painfully stupid to rely on misrepresenting stats for investments, which always goes above the mark for what is needed to maximize profits, when this particular market could in fact rely on direct investments from consumers which would then give a perfect representation of the interest and allow for optimal investment opportunities.
Xi said:
You seem to think that a bunch of modders or open source developers will be able to take the complexity of game design and create titles at the current quality level. Not saying these games are the best, but they do offer a certain quality and of course can only get better. How does indie development make them better than what they are now, and especially when indie developers already struggle to recoup costs?
Again, what we have is a failed attempt from you to bridge a potential future system for distribution and marketting to a current, canonized system which is becoming obsolete. Obviously having
both systems in place won't work. Does that answer your question?
Xi said:
Anyway, your argument for a revolution in distribution is ridiculous because it does not protect the original creator, at all.
Compared to having a big company owning the rights to something one of their more prominent developers did, and then buttfucking the intellectual property to grab some more greens? I don't know, I mean, having a big group of investors that aren't actually in it for the money, but care about the product because it is financed with their money and made for them as consumers, may actually protect the original creators from interfearing hands better than the corporate model.
I haven't adressed issues such as plagiarism, simply because I have this nagging suspicion that I don't have to, and that it'll solve itself. If two or more companies want to gather investors for a project that involves the exact, same intellectual property, it would hardly benefit anyone in the end. Either one group of developers get's the broadest support in the matter and the others simply fuck off, which is something they would have seen coming miles away, or the developers realize pool their resources and work together, thus allowing the project to have a bigger scope. Also, before you ask, I think it
is fair that ideas become a shared commodity, above or beyond the law of man; people who "dream up" the "best game of all times" and have no actual ability of materializing their ideas, beyond flaunting them in public, have no business monopolizing such concepts --
that would be unfair.
Maybe you believe that having legislated ownership over an idea or concept (such as a 50's retro future post apoc setting, for instance) is the way it should be, the only way it would work. I personally think it's impossible to own an idea, apart from personal interpretation of a concept which is something you may never be able to get across to another person however hard you try; but a basic premise is not something anyone can own. As soon as it is made public, in any way or form, it belongs to everyone.
Xi said:
This is the concept of the piracy model in a nutshell:
Invest X amount of dollars to create something. Then set the created product on the side of the road with a for sale sign but absolutely no employees to keep an eye on things. Use a tub to collect money, but let the customers decide if they want to pay for the product or take it for free. Then add zero consequence for the people who take the product for free.
Pretty naive to think this will work. In fact, it's not idealistic it's a romantic idea because it will never work.
A potential product is presented, and initial investments are made by parties interested in the product. Investors with interest in making money (bulk investors) do their math of return potential, and invest in the product appropriately. A completed product is released publically through a free system of distribution. The initial investors, who are in effect consumers responsible for the product, support their decision and the developers they have hired by putting down a small payment upon download; any consumers interested in doing so on download are naturally also allowed to do so.
"Freeloaders" are allowed to partake of the product, by a system of forced seeding that makes up for their lack of paying, and generally moves their role from pure consumers to distributors. Upon reviewing the product in question, a percentage of these "freeloaders" donate a fee they themselves deem reasonable for the quality of the product recieved.
The bulk investors remove the percentage that applies to the initial investment made by them, the rest of the money belongs to the developers. A quality product = a higher consumer interest = a higher end revenue = a higher probability of interest in upcoming projects = theoretically a higher quality product.
It is possible that such a system would work as is, but I am, as I initially said, not the brightest mind or the sharpest tool; there may be far better alternatives resonating from the same initial ideas, created by people with a better grasp of the inner workings of a marketting system than those I have. It is also possible that all this system needs is a more fleshed out core, or the incorporation of some specific laws, but, again, there is no certainty of this since it has not been applicable so far.
Out of honesty, I emplore that you neither jump to the conclusion that a free distribution system is an invalid theorem, or that it is applicable as is, on the basis of having read my contribution to the subject. I've simply thrown it out there as a testament to my conviction that a system based on the premise is not only possible, but an advancement over the current system, and an upcoming reality. Remember: it is, in fact, by far easier to pick away at established doctrines, than invent your own ones.
Xi said:
I had to respond to this too! But hackers aren't physically there so they aren't actually breaking in right?
I imagined that someone would pick up on that, and almost thought of including an explanation to why I wrote that right next to the statement itself. As I have already compared piracy to physically copying a book / recieving copies from someone who does so, without having any moral qualms, due to the fact that the "victims" in this particular case aren't actually victims but businesses that become obsolete through the act of copying, the comparison to intrusion is completely removed.
In fact, I have always steered even the various analogies that you (not you personally) have come up with in this thread, away from intrusion or break-in's, simply because there is no such attribute to piracy. Some 2-5% of game releases in the pirate community is leaked data of unfinished games, but it is not acquired by breaking in to servers; in most cases it is attributed to the sloppyness of developers with their promotional copies.
I think the comparison to hacking and "lack of physical bodies" asf, is more easily attributed to the other defendants of piracy, who simply rely on saying that piracy is not theft, because it is digital. This has never been a major part of my arguments, and thus no such comparison can be drawn.
Xi said:
Do you think wow would have less user accounts if you could pirate it and not pay the monthly fee? Fuck yes it would, stop being naive.
You always could pirate it and not pay the monthly fee, basically since the release. One could perhaps entertain the notion that fans of the Warcraft universe who were uncertain wether they would enjoy it as an mmo, first started on an emulated server to experience the prolonged effects of the gameplay mechanics, before venturing into the addiction of official blizzard servers, and that this is an attribute to WoW's popularity, much like private servers were an attribute to UO's popularity. As we have no figures to prove nor deny such a feat, it is again an open debate.
Xi said:
Fuck I just realized the show stopper of the Pirate argument. If piracy was going to revolutionize the "Industry" it would have already happened because nothing is stopping the piracy model from working as things are currently.
That is to say that both systems in place, in a constant competition with each other, is the system that pirates were aiming to achieve, and that this is the final stop for piracy and the end of the line. Somehow I believe it is a gradual process of constant change, rather than definitive stagnation, simply because there is no end to refinement in a universe that makes any bit of sense.
Xi said:
The piracy model can work alongside the traditional publisher model because nothing is stopping people from creating great games and giving them out for free but allowing them to give donations if wanted. Pathetic!
Except that if you one day found out that the secret to living another extra 20 years above average, was not wearing any pants in public, you'd wait for it to become common practice before doing so. Normality is established by a fall-in behavour where the majority decides what, in fact, is normal. To make changes to an established model, and to try something new, you'd either be working against the norm, and failing 9 times out of 10, or waiting for the current to switch in your direction.
As I have previously said, music has taken the leap to free releases and pay-what-you-will funding, and has been reported as a failure by mainstream media, while the bands themselves reported quite the opposite. It remains to be seen which opinion becomes the norm and prevails, but so far I think the media is pulling at the longer straw."]
Xi said:
I will keep this simple. I agree with many of your points, but you've still failed to show how piracy will allow for a distribution model that can recoup the development costs for someone who devotes time and energy into a project.
It is not something I have attempted, because presenting a concrete idea now, with how things are at this very moment, anything I would say
would be unrealistic. There are brighter minds out there than I, and if they managed to use the television to make money, despite the criticism it got in the beginning, and managed to use the vcr to make money, again despite initial criticism, and managed to use the computer platform to make money, despite the criticism it recieved for unrestricted copying of data, someone will certainly figure out a way of using bittorent and pirated releases in a way that will allow for economical growth and market stability.
Xi said:
Piracy removes the incentive to create things in an economical society. Economics aside, and if it was all just a passion of love, then yes piracy would be great(but it wouldn't be piracy anymore)! This is not how things work though, and you seem to be more idealistic than many of my moral preachings on the subject.
I probably sound idealistic because I'm saying that there is more to it than just swagging free stuff from a website; there are several layers to piracy, and these are never regularly presented in an argument, and some of them do not apply to what we currently have -- an old system struggling with a new system. To say that there will eventually be stability is not only an obvious statement to make, but it is at the same time an idealistic statement, simply because, while it has always been like this for as long as we have recorded our history, good conquering evil cannot be reasonably guaranteed. I'm not going to try dodging bullets through the whole post, I'll eventually present some sort of example of an economic model as I invision it. Just go along with me for now.
Xi said:
Also, the piracy distribution model gives 100% power to the consumer. The issue with this is that it takes all investment incentive away from the creator.
Not really. It is only in the old system that there is an actual boundry between consumer and creator, investor and profiteer; the system that pirates are pushing for fuses all these concepts into one, and as such there is no distinction. A creator can invest a sum into his creation, alongside of consumers and pure investors in an open market not constricted by corporate rule. The only uncertainty, but this has always been the case, is getting back the exact ammount or more of what you have invested into the project.
Xi said:
Even if something is good it does not mean it can recoup it's development costs, especially in a distribution system that puts 100% of the control in the hands of the consumer.
Considering that we've seen some extremely talented development houses fall like dominoes over the years, under the current corporate rule, it's far too apparent that our current distribution system can make no such promises either. We've often surmised, their fall came due to bad advices made by the marketting departement, and quick 'cash-cow' projects to reclaim lost profits from such lackluster projects and then we see the pattern forming; a downward spiral. This, at least, would be impossible in a system where financing was in the hands of the consumers, because consumers would never request a lackluster game to make up for lost investments; they would simply stop investing if they considered that the company had nothing more to offer.
Xi said:
You seem to think that enough people will keep buying video games, music, and movies if these people get to decide after fully using the product. This is naive and is a slippery slope of a fallacy.
I believe that if there was a possibility to back Troika in making that post apoc game they raved about before falling apart, a big enough number of people would put money in towards the project, to attract the attention of bigger investors and put the game in to development. If the end result was decently priced, and distributed over a free system, meaning that it would cost Troika nothing to distribute it, not forcing it into any unreasonable deadline (this could be agreed upon at the start of budget gathering) they could stand to make millions in cash with only 1-2$ down p. distributed copy.
We might be talking about 7 million downloads as a low estimate, with 1/3 paying on the spot, 1/3 paying after playing and 1/3 paying simply by sharing (bandwidth costs too y'know). So, an enforced sharing system like that of eMule on the torrent client, for those who do not wish to pay a nickle for their game, would in fact pay for the games distribution, and saying that half of these 'no-longer-freeloaders' liked the game, means they might make a generous/not so genorous donation at the end 50/50. 10-15$ million would be a low, I'm talking watermark low, estimate. Now remove a good 50-60% if there were bulk investors (which isn't necessarily the case), and we have a decent sum left for the developers.
Obviously, I'm basing these estimates on actual pirate downloads of current popular games, so I might be off to either side, but as an average I'd say this would work. I'm also rounding numbers off to a very low, low end, so in fact the figures might be alot more positive than what is shown here.
Xi said:
You'd just get everyone saying, "Someone else will purchase and support this developer, so I don't have to."
That is the current trend in piracy, simply because all major titles come from major corporations who have big vaults that won't be depleted for a long while (at least, that would be the general assumption; god only knows there have been surprises before). If
you were the one backing the company from the get-go, you would have a personal stake in it's success, and everyone around you would be affected as well.
To enjoy a game, knowing that your support can actually mean life & death of the company that made it, and either the continuation or end of similar products, will have an impact on a greater majority of people than you or I would be able to estimate at this time, simply because that has never been the case; it has never been our personal decision to leave a company in the dry or water it with the substance of life, and this is not something we can estimate within reason.
The idea that development houses have 'fallen' because no one bought their games is slightly twisted, as it is in fact publishers and investors that have pulled in a debt from the company when the cash return failed to reach the estimate, and in so doing bankrupted the company. On a private market investments have little to no insurance on return, and while it is a risk it is a risk that can pay off, which is why people take it. So, in the revised game market under this new distribution policy, all investments would be final just like in the private market, and the return would be in the percentage of total revenue; so a hands down investment of 300 000 in a budget of 600 000 would yield no more than 50 percent, even if the revenue was a meagre 500 000. It would certainly make it a bit harder for investors to trust that specific company, but that's just the way things are, and the developers would get to keep 50 % of the initial budget, which is hardly standard procedure for big game projects.
Xi said:
Just because a handful of people actually have some type of ethical approach to piracy doesn't mean that the majority would. I would not expect the minority to be able to recoup development costs in this case. Again, your piracy model fails at this, and there is no sign that the industry is moving away from DRM any time soon.
Saying that it is a handful of people is slightly misrepresenting, but as we have no actual figures I can do nothing but allow it. Even so, you have to remember that any "ethical" approach to piracy, would, in our current situation mean, cooperation with the system which these/we "ethical" people find obsolete, as no other system has so far been as firmly established. It does nothing but misrepresent our intentions to support it, and it costs us more money than it should to do so, and as such it would be no surprise to me if the figure of "ethical" pirates was a minority at 1/3 or even 1/5 in a worst case scenario. This is of course
at this time, with no rewards for being a honest and legal consumer.
As for DRM, there's not much for me to say about it. Apparently it does near to nothing, and so bringing it up is something of a mystery. Something that simply costs money and has no actual use or purpoise can't logically stay around for too long a time. When the profits of distribution companies start to decrease, and cuts become necessary to maintain the facade, it will be thrown out together with other useless artifacts of the past.
Xi said:
Also like I said before, with large investment projects, where the quality of the project has more potential to be good, the incentive is absolutely gone. The more you invest the higher the risk.
But if you think about it it's actually a self-regulating system. The higher the public investment = the higher the public interest in the project = the higher potential bulk investment made = the bigger ammount of consumers = the greater potential revenue.
No system today can provide more than "potential" or "estimated" revenue, and the failsafe for the investors is to pull money out of the company, which is not particularly fair, so to argue that a system based around free distribution wouldn't work because there are no guarantees for investors, that the risks are too high and profit margins too low, and that high budget games wouldn't work because there would be no player interest, is pretty much going against basic math; in fact, it's almost like saying that the current system can't work, or even that marketting has no place outside of fiction.
Xi said:
This is back assward in terms of how the concept of investment works. I will admit that the current system is failing, hell I haven't bought a new game in ages, but there are still a few gems being produced every now and again.
The current investment system is "back assward" enough apparently, because you're (and not alone, some marketting geniouses haven't figured this one out yet) expecting it to deliver a proportional cut on increased investment, and guarantees that there will be no drawbacks, which is completely unrealistic. Smart companies generally know this, and they in fact count on it; I'm thinking you're just a bit confused not to pick up on it.
There is a top to the investment / return curve, and it is below the budget of the current "blockbuster" movies, simply because pumping an extra 200 million dollars into a movie does not mean more people will see it or that the revenues will somehow go up or that you can up the price to guarantee a return on your investment.
Now, the way they figure out what the top investment for a specific movie is, is they call up a number of graph companies (those faggots who bother you on the net or call you up in the middle of the night and ask strange questions or gather stats from tv-ratings) to get the feel for what the market in general wants out of entertainment (getting your hands on this 'free statistical information' actually costs a shitload of money compared to the value of the information), and then they make a prediction of how this graph will look 2 years from now and then they have the roughest of estimates of how many people will go and see Die Hard 5 in the year 2011.
These stats are always off, simply because they always point upwards due to a loophole wherein the entertainment industry forces growth upon itself by relying on statistics generated mostly by the entertainment industry in the first placed, and by the time they actually get to the statistical pit of dismay, which is what we're really heading for, the entertainment industry as we know it will have collapsed upon itself by making the most expensive turd in the history of man without even the most remote ability to cover it's expenses.
Now, maybe someone figured this one out, because some recent successful movies have had a tighter budget, but even so it's painfully stupid to rely on misrepresenting stats for investments, which always goes above the mark for what is needed to maximize profits, when this particular market could in fact rely on direct investments from consumers which would then give a perfect representation of the interest and allow for optimal investment opportunities.
Xi said:
You seem to think that a bunch of modders or open source developers will be able to take the complexity of game design and create titles at the current quality level. Not saying these games are the best, but they do offer a certain quality and of course can only get better. How does indie development make them better than what they are now, and especially when indie developers already struggle to recoup costs?
Again, what we have is a failed attempt from you to bridge a potential future system for distribution and marketting to a current, canonized system which is becoming obsolete. Obviously having
both systems in place won't work. Does that answer your question?
Xi said:
Anyway, your argument for a revolution in distribution is ridiculous because it does not protect the original creator, at all.
Compared to having a big company owning the rights to something one of their more prominent developers did, and then buttfucking the intellectual property to grab some more greens? I don't know, I mean, having a big group of investors that aren't actually in it for the money, but care about the product because it is financed with their money and made for them as consumers, may actually protect the original creators from interfearing hands better than the corporate model.
I haven't adressed issues such as plagiarism, simply because I have this nagging suspicion that I don't have to, and that it'll solve itself. If two or more companies want to gather investors for a project that involves the exact, same intellectual property, it would hardly benefit anyone in the end. Either one group of developers get's the broadest support in the matter and the others simply fuck off, which is something they would have seen coming miles away, or the developers realize pool their resources and work together, thus allowing the project to have a bigger scope. Also, before you ask, I think it
is fair that ideas become a shared commodity, above or beyond the law of man; people who "dream up" the "best game of all times" and have no actual ability of materializing their ideas, beyond flaunting them in public, have no business monopolizing such concepts --
that would be unfair.
Maybe you believe that having legislated ownership over an idea or concept (such as a 50's retro future post apoc setting, for instance) is the way it should be, the only way it would work. I personally think it's impossible to own an idea, apart from personal interpretation of a concept which is something you may never be able to get across to another person however hard you try; but a basic premise is not something anyone can own. As soon as it is made public, in any way or form, it belongs to everyone.
Xi said:
This is the concept of the piracy model in a nutshell:
Invest X amount of dollars to create something. Then set the created product on the side of the road with a for sale sign but absolutely no employees to keep an eye on things. Use a tub to collect money, but let the customers decide if they want to pay for the product or take it for free. Then add zero consequence for the people who take the product for free.
Pretty naive to think this will work. In fact, it's not idealistic it's a romantic idea because it will never work.