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September 30, 2008 9:51 AM PDT

EA: Piracy didn't hurt 'Spore' sales

by Dave Rosenberg

There doesn't seem to be much disagreement that Electronic Arts botched the launch of Spore with heavy-handed digital rights management. However, the company reacted quickly and was able to update the game with a less oppressive scheme that calmed most of the masses.

One statistic that repeatedly popped up was the fact that more than 500,000 copies had been downloaded off BitTorrent sites. EA claims to have sold 1 million copies since launch, which would mean that there are potentially 1.5 million Spore instances. The big question is whether EA is losing money from this pirating.

The blog Game Set Watch talked about the matter with Mariam Sughayer of EA's corporate communications office:

Downplaying the piracy issue in this particular case, EA's Sughayer says: "We've talked to people that made several unsuccessful attempts to download the game and ended up with incomplete, slow, buggy or unusable code. In one case, a file identified as Spore contained a virus.

"To say that every download represents a successful copy of the game--or that there's been more than 500,000 copies downloaded--that's just not true."

"Stepping aside from the whole issue of DRM, people need to recognize that every BitTorrent download doesn't represent a successful copy of a game, let alone a lost sale," she tells Gamasutra.

What's interesting here is the acceptance from EA that there will be piracy and that maybe it's not affecting sales that dramatically.

In my original post suggesting that EA could learn from open source, I said "maybe a better approach for EA would have been to consider a 'community' and 'enterprise' version of Spore, where it's usable but not good until you pay," and I still think that's a good idea. If there are "users" and "customers" and they are both on your side, you always win.

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com.
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by kattenijin September 30, 2008 12:04 PM PDT
"EA: Piracy didn't hurt Spore sales."

You have GOT to be kidding me. Considering that EA's initial projections for September sales were TWO Million units, I'd consider a loss of 50% to be failure. Also, the 500,000 pirated copy number is already two weeks old, the current number is close to the Milion mark itself. So, a 1:1 ratio of sales to pirated copies for the first month, again, failure! If I were an EA stockholder, I'd be looking for a change of management very soon. It's not like the current stock market conditions aren't causing enough trouble without also ACTIVELY aleniating your customer base.
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by mmntech September 30, 2008 1:59 PM PDT
I didn't buy it. Hmm, I guess it did hurt sales.

I find this statement ironic.
"Stepping aside from the whole issue of DRM, people need to recognize that every BitTorrent download doesn't represent a successful copy of a game, let alone a lost sale,"
Aren't these the same people who were claiming that every torrent download equals a lost sale? Now they're saying that's not true? So EA is basically admitted they lied to us when they were trying to justify the DRM. I guess though a lot of that is from legitimate gamers who legitimately bought the game then downloaded it to circumvent their Big Brother-esque DRM. These people really need to pull their heads out of their backsides.
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by SJ2571 October 1, 2008 1:41 AM PDT
Good comment. They chop and change the value of torrents to suit their marketing.
by Renegade Knight September 30, 2008 2:23 PM PDT
IF EA looks at what they could have sold vs. what they did. They got hurt. I got spore before I knew about the DRM issues and would not have bothered if I did. I won't be getting the inevitable Spore Expansion Pack. There is one lost sale right there.
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by GotAMD September 30, 2008 2:28 PM PDT
I think other commenters have already noted that EA is not being entirely truthful here, but I can tell you that Spore's DRM definitely lost them revenue...mine, at the very least. And no, I didn't pirate the game either. So, you can chalk the loss of me as a customer up to refusal to buy the awful DRM and not to piracy.
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by genkuros September 30, 2008 3:32 PM PDT
Journalism/Selling Out/Inaccurate Reporting at its finest. First, who says that the masses have been calmed? EA bumped the activation count from an insulting 3 instances to 5. That's a big eyeroll if you can't read it from style clues. A promised deactivation scheme (transferable license) is worth exactly nothing. Second, as mmntech pointed out, EA needs to quit playing both sides of the "lost sale" coin. They sound freakishly like the RIAA at this point. Both parties are playground children who change the rules to mooch every bit of advantage possible. Third, the game isn't all that good. EA spent a pretty hefty chunk of money whirling up the hype machine. All that momentum came crashing down on DRM. Will Spore lose its "must have" instant gratitude factor? You bet. Hopefully it'll drive a nail in the coffin of DRM at the same time. Here's hoping the Will Wright's of the world will start demanding better distribution contracts.
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by Lerianis September 30, 2008 9:17 PM PDT
It's about time that we pushed for DRM to be totally made illegal unless it is a standardized, non-intrusive DRM that everyone gets on board and uses. That means no StarForce, no SecuROM, no NOTHING that installs system-level drivers in order to protect itself.
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by rucknrun October 1, 2008 4:53 AM PDT
I don't believe them. Just don't buy stuff with DRM tied into it. There is no reason to make it illegal, the government is meddling/regulating the economy enough.
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by Vensik October 1, 2008 10:37 AM PDT
I know they lost 2 sales from me, wife + me, one of those being the collectors edition. Who cares how many people downloaded the game Prior to it's release. If you could have sold more copies without DRM than with DRM, than it hurt the sales. Plain and simple. The DRM stopped no one from downloading, it only hurts customers who wanted to support EA. I'm just glad I learned about it, and cancelled my preorders before being charged.
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by Vensik October 1, 2008 10:45 AM PDT
BTW, on the subject of taking information without asking, I ran out and bought my blu-ray copy of Ironman last night, popped it in my PS3 and got a loading screen for atleast 10 minutes before I cancelled to go look up the problem. It turns out that Ironman sends "non-personal" information out through the wireless connection before allowing itself to play.

I felt extremely violated having my IP address, hardware, ect... logged before being allowed to play the Blu-ray I just purchased as a customer. No where on the outside of the box do they ask you to agree to this before purchase, and it is only found in fine print on the inside of an insert inside the box. Well, after disconnecting my wireless I was able to watch my movie, but I don't know what the world is coming to when I can't even watch a legally purchased movie without sending my information to a company.
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by grimr27 October 2, 2008 10:09 AM PDT
my thout is that if the games wear not so expensive. then more people would buy them and buy more of them. but thats just my toughts :P
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by ReVeLaTeD October 2, 2008 2:04 PM PDT
Sounds like the developers are not aligned with the big *AA's.

Developers: "Just beacuse it was downloaded, doesn't mean it was the actual game/movie/song/etc, and it doesn't automatically equal a lost sale!!"

RIAA (for example): "every song downloaded is money lost. We don't have to prove it, just look at the numbers!"

Yeah, alright.
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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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