Gabe Newell: Piracy Is A ‘Non-Issue For Our Company’

Kotaku AU

Gabe Newell has spoken about piracy before and, as you’d expect made a whole lot of sense. Now, speaking to student website The Cambridge Student, Gabe reiterated some of his previous points, and expanded on others. His major point? Provide a better service than pirates, and you will be successful.

In general, we think there is a fundamental misconception about piracy. Piracy is almost always a service problem and not a pricing problem. For example, if a pirate offers a product anywhere in the world, 24 x 7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the US release, and can only be purchased at a brick and mortar store, then the pirate’s service is more valuable. Most DRM solutions diminish the value of the product by either directly restricting a customers use or by creating uncertainty.

Our goal is to create greater service value than pirates, and this has been successful enough for us that piracy is basically a non-issue for our company. For example, prior to entering the Russian market, we were told that Russia was a waste of time because everyone would pirate our products. Russia is now about to become our largest market in Europe.

Incredibly Gabe Newell seems to have struck on something — treat consumers with the respect they deserve and you’ll ultimately reap the benefits. Who knew?!

Interview: Gabe Newell [The Cambridge Student]

Discuss

(62 Comments)
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  • [–]

    Toasty Fresh

    Saturday, November 26, 2011 at 11:02 AM

    You’re a good bloke, Gabe. Keep it up.

  • [–]

    Lucas

    Saturday, November 26, 2011 at 11:28 AM

    I’ve been saying this for ages, and am glad that finally its backed up by someone credible. :P

  • [–]

    Wolfhammer

    Saturday, November 26, 2011 at 11:28 AM

    Someone needs to forward this to Ubisoft…

  • [–]

    NotoriousR

    Saturday, November 26, 2011 at 11:36 AM

    This is someone who understands the industry, and treats customers like customers, instead of treating them like toilet paper and shitting all over them.

    • [–]

      blaze0041

      Saturday, November 26, 2011 at 11:38 AM

      Aside from Activision, Ubisoft and EA to some extent, are there other companies treating their customers like shit?

      • [–]

        giort08

        Saturday, November 26, 2011 at 11:43 AM

        Capcom

        • [–]

          C.S

          Sunday, November 27, 2011 at 12:14 AM

          Capcom don’t treat there customers with much respect at all if you ask me.

          They are trying to squeeze every cent from you with every single game the re-release.

          • [–]

            RocK_M

            Monday, November 28, 2011 at 10:33 PM

            Ermm.. that was kinda the point why Capcom was mentioned

            Oh Namco Bandai to the list please! =D For the
            “Hey Guys! we has a new JRPG for you complete and utterly exclusive to this console… oh what? references to characters not present? excessively buggy release to the point of unplayable?.. nah your just imagining things!” routine xD

      • [–]

        Sam

        Saturday, November 26, 2011 at 11:44 AM

        Microsoft and to a lesser extent Sony.

        • [–]

          mic

          Saturday, November 26, 2011 at 1:24 PM

          Nintendo as well.

        • [–]

          Average

          Saturday, November 26, 2011 at 10:07 PM

          Aside from the PSN crash, not really Sony at all. Everyone just THINKS they’re shitting people over.

          • [–]

            Excelsior

            Monday, November 28, 2011 at 10:35 AM

            Isn’t Capcom the same company that made a game where you can only ever have one save file which is not re-writable or deletable?

            That seems pretty anal if you ask me.

            I’m not against DRM, but there’s gotta be more subtle ways of achieving it than that.

  • [–]

    Loopy

    Saturday, November 26, 2011 at 11:37 AM

    I completely agree with him on the service aspect. I haven’t pirated a game for years now that I get most of my games through steam, it’s nice to not be shafted by Australian release schedules by publishers who don’t really care.

    • [–]

      Greg

      Saturday, November 26, 2011 at 7:39 PM

      Its been years since I played a pirated PC game and I have a mountain of stuff on steam. They do a really good job of highlighting older games with their specials, so many games that I missed first time around that I’ve picked up during their sales.

      The companies screwing Australian customers over are a hassle but I have friends and family in the US on steam so Paypal and gifting is a simple way around that.

  • [–]

    Ezkaton

    Saturday, November 26, 2011 at 11:37 AM

    With a release schedule/timeframe like Valve’s, I’m not surprised… Hah.

  • [–]

    m

    Saturday, November 26, 2011 at 11:41 AM

    This isn’t STILL news, is it?
    He’s been expressing his opinion on piracy for years now. Nothing new here.

    • [–]

      Toasty Fresh

      Saturday, November 26, 2011 at 11:59 AM

      People are still utilising stupid DRM so it obviously still needs to be considered news so people can realise their mistakes.

  • [–]

    D.C.

    Saturday, November 26, 2011 at 11:43 AM

    Batman for PC has Securom, GfW and Steamworks. Three DRMs for the price of one. I wonder if that’s going something to do with how terrible it’s playing. :(

  • [–]

    nicholasmc1

    Saturday, November 26, 2011 at 11:45 AM

    Yep….after I discovered steam I stopped pirating games, though I don’t think we can through pricing out of the equation, I still feel dirty when I pick up a game for more than 50 bucks AU these days, thanks to the standard set up by steam, I dont expect to pay 100% more just for a physical copy.

    • [–]

      weresmurf

      Saturday, November 26, 2011 at 2:22 PM

      Same. Ashamedly DE:HR is the ONLY pirated game on my pc. All others are steambound and totally legal. Now its on sale on Steam, Im buying it totally legit. Steam is my sole purchasing venue for games now on the PC. Love love love love it :D

      THANKS GABEN!!!!

      • [–]

        Lazarus

        Saturday, November 26, 2011 at 6:32 PM

        Uh oh, you confessed: now Adam Jensen is going to sneak out of a vent and tranquilise you…

        • [–]

          Richard James

          Saturday, November 26, 2011 at 9:37 PM

          He didn’t ask for this.

  • [–]

    Jupiter

    Saturday, November 26, 2011 at 12:09 PM

    Piracy would be even less of an issue if they would push publishers to have the same price for game of steam, instead of the outdated region-pricing model.

  • [–]

    Me0wgrAvy

    Saturday, November 26, 2011 at 12:11 PM

    Certainly a fat bugger lol

    • [–]

      weresmurf

      Saturday, November 26, 2011 at 2:23 PM

      Ok Mr Universe wheres your picture?

      Dumbest fucking comment of the week award right here folks…

    • [–]

      Pakka

      Saturday, November 26, 2011 at 3:09 PM

      Weight is a ‘non-issue’ as well for Valve it seems.

      But he makes a great point. I think this is why Origin will struggle to compete directly with Steam. I look at from the perspective that Valve was and IS a developer first, I believe. Steam came after Valve and they’ve remained a private company without the nagging, selfish and greedy shareholders.

      Origin has been designed by a publisher, who in the eyes of a lot of gamers are the evil of the video game industry. Valve, digitally speaking, has stuck with self-publishing and distributing their games. Retail lately goes to EA but they have no real control over the product.

      I just feel dev’s are more in touch with gamers than the selfish publishers and I reckon that will reflect when comparing the two services of Origin and Steam, which could also relate to how publishers deal with privacy, exactly how Gabe himself has said it.

    • [–]

      mchaza

      Saturday, November 26, 2011 at 5:57 PM

      he will always be smarter, richer, more popular and respected than you will ever be thats for sure.

  • [–]

    Cerberus

    Saturday, November 26, 2011 at 12:40 PM

    I like how Gabe used Russia as an example but I’m sure that the RU is the largest seller of games due to the fact most games are ridiculously cheap so those that want to save some money and are fairly savvy can just spoof IP’s to buy their Steam games from Russia or just import a CD key.

    • [–]

      Virus__

      Saturday, November 26, 2011 at 12:45 PM

      I was reading keys that are bought in Russia and throughout a few of the Asian countries where pirating is big, it’s the only place you can activate the keys. Makes sense to me, stops people using a 3rd party site to buy the key then activate it in their region.

  • [–]

    Underworld

    Saturday, November 26, 2011 at 2:39 PM

    He makes sense. But no matter how good the service is, there’ll always be pirates who are just cheap bastards.

    On another note. Why do most PC gamers buy only through Steam? I buy all my games at game shops. I love going there and picking up some deals. It’s part of the experience of being a gamer for me. I love it. Plus I like the staff.

    Don’t you miss it?

    • [–]

      Thom

      Saturday, November 26, 2011 at 2:49 PM

      Price and convenience. Steam sales are insanely cheap. I bought Mass Effect 1 and 2 this week for $5 a piece.

      Convenience: I already own them both on X-Box, but I may move OS next year. Won’t take them with me. I’m facing the same problem with my CD/record collection (about 600 albums). Just too many to move around, so I’ve moved to MP3′s.

      • [–]

        Nyquist

        Sunday, November 27, 2011 at 4:35 AM

        And do you have the the express written permission of the publisher and/or artist to make digitally reencoded versions of those CDs?

        Hah, flashback. Remember when cassette piracy was an actual thing? And it was illegal to record cassette to cassette? Same shit, different century.

    • [–]

      spizzaza

      Sunday, November 27, 2011 at 2:13 PM

      I like the fact that I can have a universal system where I can have all my games. I can chat and join friends and even compare their stats and games.

      If PC gaming was more like console gaming (with the one central community) it would be perfect.

      • [–]

        Dobo

        Monday, November 28, 2011 at 12:21 PM

        so you obviously havnt used steam

      • [–]

        Sevs

        Tuesday, November 29, 2011 at 12:26 AM

        Format shifting is a perfectly legitimate defence to any copyright infringement claims.

  • [–]

    Underworld

    Saturday, November 26, 2011 at 3:04 PM

    That is cheap.
    But I still rather buy from game shops. I like having a physical thing I can show. I’m a collector, so I’m very proud of my movie/game collection.

    600 albums? Keep em man.

  • [–]

    Thooperman

    Saturday, November 26, 2011 at 3:09 PM

    Gabe is a wise man. There have been so many times where I have felt I’ve been punished for doing the right thing with DRM issues in games, or un-skippable piracy warnings and advertisements on DVDs. If I downloaded them, I wouldn’t have to deal with any of it, but I would be hurting the people I love… the people who entertain me.

  • [–]

    Seb

    Saturday, November 26, 2011 at 3:23 PM

    I’m sure I read an article about this a few months ago.

    • [–]

      Mark Serrels

      Saturday, November 26, 2011 at 4:28 PM

      He said something similar in another interview. I thought these new quotes were worth quoting in light of some of Ubisoft’s latest claims.

      • [–]

        Joel

        Saturday, November 26, 2011 at 6:54 PM

        Ubisofts claim on for “Ghost Recon” for pc?

  • [–]

    Bangers

    Saturday, November 26, 2011 at 3:26 PM

    He’s absolutely right. Steam does such a great job, it’s a hell of a lot easier to use Steam than it is to torrent a game, crack it, and keep it updated and still working online.

  • [–]

    PeeJayBee

    Saturday, November 26, 2011 at 5:19 PM

    Thanks, Gabe. So tell me again why the price of Arkham City jumped from $50 to $100 for Australians? I’ll be pirating that one, thank you very much.

  • [–]

    rob

    Saturday, November 26, 2011 at 5:21 PM

    Still ripping us Australians off though Gabe!
    $100 (batman arkham city and many more!) for a digital copy of a game is robbery, so dont be tto quick to blow the guy!

    • [–]

      James A

      Saturday, November 26, 2011 at 5:29 PM

      Its the other publishers who do this. Ea, 2k, rockstar, sega, activision, eidos, thq, Bethesda all up the au price on steam. Interestingly companies most piracy aware like stardock and Valve (run by gabe) never have regionalized their online prices.

  • [–]

    mchaza

    Saturday, November 26, 2011 at 5:56 PM

    Gabe solution: Treat the consumer with respect and they will not steal your products.

    Publishers Solution: Treat your consumers like dirt and they surely wont steal our products.

    umm, which one makes the most sense.

    • [–]

      scree

      Saturday, November 26, 2011 at 7:02 PM

      That’s a no brainer! The second option of course! (At least according to the way most publishers treat us)

  • [–]

    Barney

    Saturday, November 26, 2011 at 6:21 PM

    Good on you,Gabe!
    Now where’s our HL2:Episode 3?

  • [–]

    Goddy

    Saturday, November 26, 2011 at 6:53 PM

    This is the sort of class that guarantees I will NEVER pirate a Valve game.

  • [–]

    Lucas

    Saturday, November 26, 2011 at 7:11 PM

    100% on the money.

    There’s a few people I actually truly respect in the gaming industry, Gabe Newell is definitely one of them.

  • [–]

    NotFrank

    Saturday, November 26, 2011 at 8:17 PM

    He runs the company, not some fucked up exec who is all about shareholder value, so its common sense despite Valve time (google it, you will lol) i will wait for and pay for their releases, current steam lib has over 200 titles most brought on release day and not via sales 2 years later.

    Ubisoft can F off to consoles

  • [–]

    Ahtaps

    Saturday, November 26, 2011 at 8:45 PM

    The chaps at GOG are saying similar things. This is madness I tell you. I don’t think I can handle logic on my internets. *Goes off to take a shot of Ubisoft to calm down*

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