> It's obviously true that there is not a 1:1 relationship between piracy and lost sales. But it's also not a 0:1...some pirated copies are in fact lost sales
Another thing to consider is that pirated copies can be lost sales to someone OTHER than the owner of the pirated material.
Suppose I would like a game to relax with. I'm willing to spend up to $20. I see a game that I'd like but it is $50--so I pirate it. Let's assume that if I could not have pirated it, I would not have bought. $50 is simply off the table for me.
We can't reasonably count my pirated copy as a lost sale to the maker of that $50 game.
However, if I could not have pirated it I would still want to have a game. I would have probably found an older game that I could get for $20, or perhaps picked up an indie title or two.
Steam is a great example. For years the big publishers had been whining that piracy was destroying PC gaming. Then Steam came out[1] with reasonable priced games, awesome sales and no hassle updates and it is a huge success. There are countless of people who formerly pirated games that now buy a lot of games through Steam.
Another thing to consider is that pirated copies can be lost sales to someone OTHER than the owner of the pirated material.
Suppose I would like a game to relax with. I'm willing to spend up to $20. I see a game that I'd like but it is $50--so I pirate it. Let's assume that if I could not have pirated it, I would not have bought. $50 is simply off the table for me.
We can't reasonably count my pirated copy as a lost sale to the maker of that $50 game.
However, if I could not have pirated it I would still want to have a game. I would have probably found an older game that I could get for $20, or perhaps picked up an indie title or two.