DRM Effectiveness: Is Piracy a Pricing Issue or a Service Issue?

  • Valve co-founder and managing director Gabe Newell has reiterated his take on the issue of piracy. Valve is the creator of game platform Steam that distributes games to a global community of 35 million players.
  • Newell believes that DRM does not work and pirates are not necessarily always seeking free content.
  • “One thing that we have learned is that piracy is not a pricing issue. It’s a service issue,” he says. “The easiest way to stop piracy is not by putting antipiracy technology to work. It’s by giving those people a service that’s better than what they’re receiving from the pirates.”
  • “Most games available on Steam are easily found in pirated form on the torrent sites,” writes ETCentric contributor Nick Nero. “Even if you buy the game, many users download the torrent because most DRM requires the disc to be present which slows down the game startup and level load/access times.”
  • “What keeps me as a Steam customer is their cloud service,” adds Nick. “I can download any of my games to another PC, I can backup my games to encrypted physical media, my game saves are stored in the cloud, and I can easily find my friends for mulitplayer. The service layer is what brings in the customers.”

Which Smartphone OS will Come Out on Top?

Nick Nero provides some interesting perspective in this month’s Connected World Magazine regarding which smartphone OS will become the dominant global platform by the end of the year. The short answer according to Nick: Google’s Android.

The article provides an interesting overview regarding the progression of RIM’s BlackBerry, Apple’s iPhone, Windows Mobile devices — and the growing worldwide adoption of Android devices. It further points out that Android will continue its dominance throughout 2011 based on several key factors: Open Software Architecture (“arguably Android’s biggest competitive advantage”), Open Marketplace (consumers recognize “the benefit of a free-market approach to smartphone apps and this will continue to push Android to the head of the pack”), and More Partners (Android “is available on devices from practically every carrier in the country”).

Nick offers these final thoughts: “By the end of this year I expect Android to have a very comfortable lead in the smartphone OS market unless Apple begins to open up its model a bit. I wouldn’t bet on that happening given that a very pretty walled garden is essentially Apple’s business model. I don’t feel too sorry for Apple though — it does extremely well in the high-quality experience niche it occupies in the Macintosh space.”

Related CNET article: “Gartner: Android leads, Windows Phone lags in Q1” (5/19/11)

Related ReadWriteWeb article (including videos): “The Future of the Smartphone: Holograms & Folding Screens” (5/18/11)

Related Gadgetbox article: “PlayStation phone coming to Verizon Wireless” (5/17/11)

Related Mashable article: “Smartphone Sales Up 85% Year-Over-Year” (5/19/11)

Related ReadWriteWeb article: “iOS Ad Impressions Up Nearly 50% this Year, says Millennial Media” (5/19/11)