Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
What is causing the sales decline in PC games?
Published on July 23, 2004 By Draginol In PC Gaming

There's a great discussion on one of my favorite websites, Quarter To Three about why PC sales are in decline which I wrote about here.

Brett Todd and I are taking different approaches. He makes a good argument that basically boils down to this: It's so easy to download games illegally that increasing numbers of people are doing so and that is now showing a real impact on the bottom line.

Here's our discussion.

Brett writes:
Brad, this assumes that everyone shares your taste. Personally, I think there have been a lot of great PC games released this year already, with some blockbusters still to come. We've had UT2004, Thief III, Far Cry, Painkiller, City of Heroes, and Silent Storm. I've found this year to be better than 2003 overall. But I do admit that the year so far has lacked a big splash title to get people excited about PC gaming. That's why I'm not too worried about the numbers so far. After Doom III and Half-Life 2 hit, PC gamers will head to the stores and numbers overall will go up as these two games get people buying more.


Most of the games I mentioned as mega-games aren't ones that I personally get into. I'm talking purely in terms of gross revenue.  If we're talking about overall sales, then it's all about the numbers.  If 2003 had "Titanic" and "Phantom Menace" (for instance) and 2004 didn't have Spiderman II or Harry Pottery released yet, we might have people discussing why movies have declined too.

I like UT and think City of Heroes is a cool game and so forth. But they're not the mega sellers (well UT2004 probably sells well). Maybe when they get a couple of sequels under their belts. Wink (Though UT 2004 is obviously a sequel but it's only one game! It has a heavy load! <g>).
 
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Also, do you really think that PC gamers would be turned off the entire format because of issues like the one you mentioned with MOO3? Personally, I think MOO3 was simply a terrible game and not at all an example of what's going on industry-wide. But even if it were some hallmark of modern crap design, it couldn't push PC gamers to consoles because the game styles are dramatically different. You can't get anything like MOO3 or GalCiv on a console system. Why would someone frustrated with MOO3 turn to the PS2? This makes as much sense as someone frustrated with the cost of car repairs turning to a skateboard for the morning commute.
 

I was just using MOO3 to illustrate the point. It doesn't take too many bad experiences to turn someone off if the competition (consoles in this case) don't have those same problems to the same degree.

Let's use a different example: Knights of the Old Republic. That was a great game. Right?

And yet when it shipped, it had serious problems with ATI Radeon cards. Whereas if you both it for the XBox, no problem of course. So quite a few people who played it had to wait for a patch. This wasn't some obscure thing either, it affected a lot of people (myself included).
 
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I think that if PC gamers are getting turned off by substandard design and all the me-too stuff, they're more likely to leave gaming altogether. Which is happening to an extent. But I think a lot of these disaffected people are still gaming, only they've now decided that the games aren't worth paying for. Combine that with the number of people who take advantage of sites like Suprnova just because they can, and you have a serious piracy problem with PC gaming.
 

I think there's always been a piracy issue but I don't think it's anywhere near enough to cause the kinds of losses we're seeing.

Let me use the Object Desktop example - we sells millions of dollars of this stuff on-line. If anything is vulnerable to piracy it's that -- it's small in file size and it's in that area that people could rationalize it as "something that should be free with the OS!!!" Yet we still sells tens of thousans of copies of it per year.

Piracy only matters when it is costing sales. And the what we don't know is whether that is happening to a significant degree. I am asserting that while piracy may be high, it is not costing significant actual sales.

That's one of the oldest arguments in the books of course.

But now that PC revenue is actually declining, some are asserting that it's piracy doing it. I just don't buy that. There are so many other reasons that I think are much bigger which I and others have already described.

 
Quote:

I really don't understand what we're arguing about. I'm not saying that piracy is the only reason why PC game sales are declining, but it seems awfully obvious that it's a major factor.
 


Hence our debate. Wink I don't think it's obvious that it's a major factor. I don't think it's a significant cause of overall sales declining.

I see piracy has being a "leech" factor on PC game sales. I.e. X% of sales are lost to it. And I don't see X% having grown significantly in the past year or two.

Instead I believe:

a) Mega titles havne't been released this year.

More and more PC gaming time is spent playing MMORPGs which is taking away from # of games purchased.

c) The PC gamer demographic has gotten somewhat older and lacks the patience to mess around with obnoxious copy protection, buggy games, unrealistic hardware requirements, and incompatibilities. Alienated, these potential buyers become much more picky.

I would assert that fewer PC games are pirated OR purchased right now.

I'll even provide an example: Supernova's Alexa ranking is stale or declining. I suspect eventhe warez people are being alienated too! Wink
 
Quote:

It has never been easier to download a PC game. That alone should indicate that piracy is up, because if you give people a chance to steal anonymously and without consequences, they'll take it nine times out of ten.


I'm not so sure about that. But let's say for the sake of argument that you're right.

How would you solve it?

Here's what I would do:

1) Make it even easier to purchase/download games.

2) Provide additional updates to the software after release that add features based on player feedback that can only be obtained first/early by verified customers.

3) Make sure the games work right out of the box/download/whatever. Make updates available of course but make sure they're not required just to get the game to work right.

4) Price it competitively so that the person sees the value in it.

That doesn't seem like it would be that hard.   

Comments (Page 4)
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on Jul 29, 2007


I should have clarified: it was the anti-cheating software that was messing up my antivirus. It also didn't work, since by the time I quit the game economy was shot from hacked money.


I'll keep that in mind because once I move my game to MMO, I do intend to check files for tampering. One cheater can chase away 50 honest customers.



http://en.wikipedia.org/wiki/GameGuard read up on the parts about the program's weaknesses and flaws. Infuriating.
on Jul 29, 2007
What sales ?
Not sales , playing decline.
Even new EA "chief" said that they recycling same uninteresting crap for same $40 for years.
I think piracy even decreased lately and besides 2-3 good games in a year there is nothing to play.
on Aug 21, 2007
x
on Aug 21, 2007
Just read Cuddlelumps's contribution and must say that I agree whole-heartedly. Piracy is an issue, but if PC game sales decline, then piracy is not the main reason. Other reasons are, among others and like Cuddlelump states, lack of innovation, too much emphasis on graphics rather than gameplay, etc.

Let me add a couple of points:
- Pirates help to sell games, too (marketing people know what I mean).
- Piracy is used by the game manufacturers / distributors as an alibi to keep prices high (in addition to blaming them for low sales figures).
- Not every user of a hacked game would have purchased the game legally, if he couldn't have gotten hold of a hacked version. The contrary is true, too (see point one): At least some users of hacked games do purchase these games later on, if they like them.
- Piracy is not new. It has existed more than 20 years ago, and has always been used as an excuse for high prices and for attempts to make the life of legal buyers more difficult.
- Piracy is a social phenomenon. It's popular, it's "in" to use something without paying. Without this general attitude, piracy wouldn't be an issue. And it's not limited to the younger people: I have been laughed at by normal, well-educated people in their 40's and 50's when I told them I didn't produce or use illegal music or software. What do you expect from the kids?

Well, you could say, every society has the gaming industry and markets (and pirates) it deserves. Still too many people (me included) do play by the rules of both the vendors and the pirates. Otherwise the market would have collapsed already.
Have fun!
on Aug 21, 2007
I guess entertainment, being a non-essential sector of economy, is more able to sustain piracy or even tolerate it. It's not all bad if it drives innovation and adds to marketing even though it's not fair I seriously doubt it affects quality. People get into business to make money, there are more honest consumers or consumers who don't have access to pirated goods, that pay for goods at retail, than there are who acquire them through piracy.

Piracy though bad for startups probably, and huge corporations probably benefits the guys in the middle the most per hurt it causes.
on Aug 21, 2007
Quality is lacking.
on Aug 22, 2007
It depends on how you measure quality. If graphics that are closer to photo realistic than geometric shapes of images, than quality is improving. If you don't mind telephone/radio quality audio but a good standard is 5.1 or 6.1 surround sound, than quality is improving.

Game depth is falling, and so is the crispness of ideas, but in a medium where innovation takes a back seat role against for sure profitability there is a serious quality problem. A lot of game companies do half ass work or don't support their product once it is released. That's also bad business regardless of the quality.
on Aug 22, 2007
The game companies knew that people would keep buying the same game with updated graphics, and maybe a couple new features. But that only appealed to people without the earlier version of the game, or people unhappy with the earlier game, or people who just need to keep up with the Joneses. Well, everytime someone buys a game, there's one less person in category one. Category two goes down as they buy the new game and like it enough to keep it as their game of choice. Category three drops as the age of gamers increases.

So you have a slowly shrinking pool of customers for the same old game, but the game companies already lost the ability to make a new game.

Add to that the fact that these new games often come out buggy, probably because it's based on an older game with a new feature that messed something up and they didn't check the old stuff because it used to work, and you have lost a market. Not marketshare, but the actual market for games itself is becoming smaller. Why pay for broken stuff?
on Aug 22, 2007
The piracy bandwagon is a useful one as it can be used to "explain" all sorts of ills and still sound credible. Many have put that boogey-man to rest eg Stardock with its lack of copy protection. Spending a chunk of cash on developing and enhancing copy protection is a pointless exercise, it will always get cracked, no matter what you do. Its more economic to plough those resources into the game, not chase a fools paradise of simplistic in year bonus fads.

Bad Quality etc? In the end thats self regulating, make garbage, Sales will in the long term match the garbage. For sure some will get away with it for a while, but business horizons are far far longer that the average gamers view of life.

Improve Quality? Yup I believe there is much mileage there. Game Business models now are far too much a "churn them out" factory option. Innovation too often is focused on manipulating Markets, not making Markets. However, that will continue as long as gamers allow it - dont buy the pap "expansion" package that offers little more than cosmetic changes, it will not be long before they stop that nonesense. Even the Sheep can tell the Shepard to take a hike if he doesnt look after them.

All the above rests with us the Gamer, let them get away with it, and we get what we deserve. A Generalisation of course, exceptions prove the Rule as always. At the end of the day, money talks, so if its not up to snuff, dont buy it. I believe that process has now started, people are ticked off being manipulated by Business Models. (Come the Revolution ....   )

At the end of the day, whilst acknowledging he Quality issue as a key factor, I think its a bit more basic.

Many games are now complex affairs and deep in nature (accepting the various market segments where one off quickies are the order of the day). Many Players dont feel the need to change or buy a new one, in truth they are happy still working through what they have got already! Why buy another? The only reason will be a new "wow" game with better options / quality / new genre. Which takes us back to Quality .....

I believe the end result will be price increases for Games - providing they are not extortionate and we get value for the increase most will go for it. Without the increase to give more resources to improve quality, most will just stay where they are, why change or buy another if you have not really worked through what you already have ...... ?
on Aug 23, 2007
The worst thing now is that PC gamesales are declining! And a large part of that reason is because people are too dumb to understand system requirements, can't build a computer (Get someone to do it for you then!!!) and are computer illiterate.... Videocard drivers ? What's that?

So instead of advancing up the ladder to a higher technological understanding, the stupid people of the world get consoles and buy ultra-expensive consolegames.... Makes me want to get someone to create a .jpg with a normal guy with a computer and a retard with a console....

But I understand that computers need to become easier to operate. As long as the OS doesn't tell you exactly what you need to do in the form of a idiot-step-by-step guide (or fix it itself), computers will be too difficult to operate for normal people....

Funny....makes me think of a user at my local computer enthusiast forum where he asks what good EFI can possibly do when BIOS does everything today....

Seems he didn't think about ease-of-use and of all the computer illiterates out there....
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On topic though, A.F.A.I.K, most people will get things for free if they can, and I'm one of'em My friend (who's too damn stupid to operate a computer) told me that when he got his Wii chipped, the chinese guy chipping it told him that the rush for Wiis stopped when Nintendo changed something in them so pirated games don't work anymore.

My friend is impatient and buys every game he want and can't wait even a friggin week for me to download it since he wants it NOW! Like one time he wanted some turtles game I said: "Come around in 2-3 days and I'll have it ready". Patrik: "A few days..? I want it today...." Me: "....Patrik, this isn't "call and we burn!" Yeah, some people are just amazing....

Myself I always bought my games for all the consoles I owned (I didn't know about pirating or how to get it to work). The prices we're completely outrageous! For the NES it was just 300-400 but for the SNES they robbed me....749:- Swedish crowns was standard (which is 78.89 euros). I remember DOOM costed 94.69 euros....

I will never forgive Nintendo for that kind of robbery on the SNES and N64 and I will NEVER give them a red cent ever again!!! Actually I want the consoles to DIE so the PC can take over.

When I gotted my PC in 1999 the guy who sold it to me also gave me some good games (not a single legal copy ofcourse )

Nowadays, when I want a game I first check my private DC RAR hub. If it's not there (which is very unlikely unless it's old) I check some torrentsites. If it can't be found there either I ask on my hubs forum to see if anyone can get it. If it's still a negative I run a search on my local computerenthusiast forum (Sweclockers if you want to know) for the gamename and then PM the people who I think got it. Lastly I ask my friends (they're not computer enthusiasts so not a big chance they can help me)
If all this fails, I go to Prisjakt.se and locate where it is the cheapest.
If it's still impossible to find (like the original Etherlords), then I check the stores in my city and ebay & auction sites.

If I still haven't found it by now, I give up. (I did find Etherlords on Totalgaming.Net but I have never had any tokens).

The only games I've ever bought for the PC are: Heroes of Might & Magic 3 Complete (was in the shop and I wanted it. Couldn't find it online). Worms Armageddon (kinda cheap in the store). DOOM Collectors Edition (Always liked DOOM and I felt I had a lot of money that day). GalCiv 2 (Want to support good A.I + I thought I would enjoy it). WoW (played the trial and got hooked. Didn't wanted to pay per month though so never renewed the subscription). WarCraft 3 + TFT (Bought it on the day of release + wanted to play online. Got dissappointed though and sold it to my nephew).
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