Game Piracy Costs Publishers a Whopping 20% in Revenue! 💸

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Summary:

  1. Significant Revenue Loss
    A new study reveals that game piracy costs publishers an average of 19% of revenue, particularly when digital rights management (DRM) protections are circumvented.

  2. Research Methodology
    The study, conducted by William Volckmann at UNC, analyzed 86 games using Denuvo DRM on Steam from 2014 to 2022.

  3. Impact of Cracks Timing
    Cracks appearing within the first week of a game’s release can lead to a 20% revenue loss, while cracks that surface after six weeks result in only a 5% loss.

  4. Data Proxies Used
    Volckmann utilized Steam user reviews and player counts as proxies for sales data to gauge the financial impact of piracy.

  5. Insights on DRM Effectiveness
    The findings emphasize the challenges that game publishers face in protecting their revenue, especially in the early stages of a game’s launch.

Read more at: Ars Technica

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