I guess herein lies the potential fallacy of my statement.
Decreased desire is a Subjective observation.
One cannot draw a direct correlation, but there is data to conclude that not having a piracy option will boost sales of data initially, at least when it comes to games. (Hence why publishers continue to use Denuvo)
Counterpoint: When Louis CK (prior to being outed as a sex pest) released one of his comedy specials on his website DRM-free for $5 he became a millionaire almost overnight.
It also jives with early Steam Sales when Valve would cut titles like Left 4 Dead Counter Strike down to 90% off, and they would sell so many digital copies that they were actually making more money off the lower price.
Now we did something where we decided to look at price elasticity. Without making announcements, we varied the price of one of our products. We have Steam so we can watch user behavior in real time. That gives us a useful tool for making experiments which you can’t really do through a lot of other distribution mechanisms. What we saw was that pricing was perfectly elastic. In other words, our gross revenue would remain constant. We thought, hooray, we understand this really well. There’s no way to use price to increase or decrease the size of your business.
But then we did this different experiment where we did a sale. The sale is a highly promoted event that has ancillary media like comic books and movies associated with it. We do a 75 percent price reduction, our Counter-Strike experience tells us that our gross revenue would remain constant. Instead what we saw was our gross revenue increased by a factor of 40. Not 40 percent, but a factor of 40. Which is completely not predicted by our previous experience with silent price variation. …
Then we decided that all we were really doing was time-shifting revenue. We were moving sales forward from the future. Then when we analyzed that we saw two things that were very surprising. Promotions on the digital channel increased sales at retail at the same time, and increased sales after the sale was finished, which falsified the temporal shifting and channel cannibalization arguments. Essentially, your audience, the people who bought the game, were more effective than traditional promotional tools. So we tried a third-party product to see if we had some artificial home-field advantage. We saw the same pricing phenomenon. Twenty-five percent, 50 percent and 75 percent very reliably generate different increases in gross revenue.
According to who?
I guess herein lies the potential fallacy of my statement. Decreased desire is a Subjective observation.
One cannot draw a direct correlation, but there is data to conclude that not having a piracy option will boost sales of data initially, at least when it comes to games. (Hence why publishers continue to use Denuvo)
https://arstechnica.com/gaming/2024/10/the-true-cost-of-game-piracy-20-percent-of-revenue-according-to-a-new-study/
Counterpoint: When Louis CK (prior to being outed as a sex pest) released one of his comedy specials on his website DRM-free for $5 he became a millionaire almost overnight.
https://boingboing.net/2011/12/22/drm-free-experiment-makes-loui.html
Price point matters, too.
It also jives with early Steam Sales when Valve would cut titles like
Left 4 DeadCounter Strike down to 90% off, and they would sell so many digital copies that they were actually making more money off the lower price.https://www.geekwire.com/2011/experiments-video-game-economics-valves-gabe-newell/