Piracy != theft. They are different concepts. With that out of the way...
I think prices need to drop. Computer games cost a lot more than videos, DVDs, and music CDs, yet they tend to provide less hours of entertainment. And although games are probably on a par with books in terms of entertainment hours per dollar, they are almost all of lower quality than books. (And no, I don''t just mean storyline here - I mean overall.)
Of course, with the industry as it stands, the prices can''t drop because it costs too much to develop a game and the risk is too high. The industry is barely viable. In the future, I predict that tools and middleware will correct this problem and allow good games to be made cheaply without skimping on graphical or audio assets, or indeed requiring immense amounts of programming. At this point, the prices might drop again. So it''s a case of riding out the storm.
Games also need to be bug-free. This is what I meant by quality above. I used to be able to pay about $14 for a game that would give me 100 hours or more of playability and ZERO crashes. Now I would be expected to pay nearer $50 for between 10 and 20 hours of playability, and bugs and crashes as an added bonus. Pay more to get less. It''s no good the developers arguing that it costs more because they put more work into it - it''s a retail product and the worth is in what the buyer gets from it. Their extra work is largely a waste as it goes unnoticed. (This may seem to contradict previous claims by me where I''ve said that todays games are no worse than old games. However, I assert that the quality of games themselves has been constant over the years - it is merely the cost of development and defect rate that has risen.) While I''m on the subject, I won''t listen to anyone who says it is impossible to write a bug-free program, as that is a defeatist attitude as well as being a complete falsehood. So long as games are buggy, it not only reduces the desire to buy them, but it increases the desire to wait until they are sold at budget price with a patch. I will not buy full-price software any more.
Which leads me on to... budget software. This probably reduces piracy too, as you can now get games at a low enough price that it''s not such a major investment. However I worry that it damages the sales of new software. This wasn''t much of an issue in the 80s when budget software was around originally, but today games are more expensive to develop and more sales are needed. If I can get 2 games a month for less money than I used to spend buying 1 game a month, then I am getting more entertainment while putting less money in the developers'' pockets. But this particular point should be argued in the Business forum.
Now, a more practical suggestion - moving to a server-based industry gets around piracy. eg. MMORPGs. Instead of trying to be a manufacturing industry (and a pretty bad one at that), game developers are slowly becoming a service industry with these games. Anyone who wants to compete will have to have a high degree of technical ability, as well as to be able to host their own servers and so on.
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