Update: Reader Phillip wrote in to tell us some outlets are concerned with the figures 24/7 Wall St. has presented. While we never claim these figures are 100 percent accurate (we attribute everything to their report, after all), we felt it necessary to point out some other takes on the info. Both Tech Dirt and Ars Technica are calling into question the figures, while our own TUAW suggests these figures are merely assumptions and could very well be "wide of the mark."
Original post: Score several million for the scurvy dogs. According to a piece over at 24/7 Wall St., the Apple App Store has lost over $450 million in profits to piracy since opening its virtual doors in July 2008. Bernstein analyst Toni Sacconagh estimates that the App store has had three billion items downloaded by users since its inception, with only 13 to 21 percent (510 million) of those downloads being paid Apps.
It's a story we hear far too often. Developers are regaling us with tales of how much piracy hurts their profits and pirates are laughing maniacally at how easy it is to hock illegal wares, living in some dark, damp cave where no light or goodness can be found -- well, save for the light from their pirated iPhone game, anyway. This is done through "jailbreaking," an increasingly common practice of unlocking one's phone through black magic and evil incantations that allow non-App Store programs and items to be installed. Basically, it's God Mode for your iPhone.
So how can developers overcome this? Well, some are designing games that requires the phone contact a source to verify the version being played is legit -- an interesting concept that could help pave the way for better anti-piracy solutions. Either way you slice it, you have to be a real [negative adjective] to pirate a game that only costs you a few cents.
[Via Pocket Gamer]
Reader Comments (69)
Posted: Jan 15th 2010 1:20AM MystileArmor said
If you can't dish out a buck for a game you want, you shouldn't fucking play it either.
Reply
Posted: Jan 15th 2010 1:41AM (Unverified) said
I see your point, but it's moot.
Also, I've noticed that pirates will rarely admit that they are a dirty dirty pirate, but they will defend the right to pirate vigorously.
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Also, I've noticed that pirates will rarely admit that they are a dirty dirty pirate, but they will defend the right to pirate vigorously.
Posted: Jan 15th 2010 11:10AM (Unverified) said
It's also totally common sense to assume that none of the pirates would have bought your software if they didn't have the option of stealing. Equally flawed logic, and when we're the ones stealing software I don't fault them for framing this in their favour.
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Posted: Jan 15th 2010 10:58AM Captain Planet Planeteer Power said
I won't lie. I have an iPhone with the appropriate "hax". I do occasionally download pirated apps BUT ONLY BECAUSE I believe the crAppStore to be heavily flawed. I'm not in the business of paying for something that I "might" enjoy without trying/testing it out first and seeing how there are no "lite" versions of everything, I will probably continue to "demo" these apps/games in this way. I have purchased a number of games after "testing" them though:
Knights OnRush
Flight Control
Tetris
Crystal Defenders
Canabalt (FTW!)
Ynth
Reply
Knights OnRush
Flight Control
Tetris
Crystal Defenders
Canabalt (FTW!)
Ynth
Posted: Jan 15th 2010 11:44AM The Blank Mage Returns said
I buy my video games, but I pirate my science fiction and anime. (Box sets are expensive.)
Reply
Posted: Jan 15th 2010 1:40AM MystileArmor said
How do you think Apple makes their money on this?
Reply
Posted: Jan 15th 2010 1:28AM (Unverified) said
.Yeah $19 is quite a pretty penny to get a game for a phone.
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Posted: Jan 15th 2010 1:24AM CaramelZappa said
How many times do we have to go over this
1 pirated copy of software =/= 1 lost sale.
Reply
1 pirated copy of software =/= 1 lost sale.
Posted: Jan 15th 2010 1:57AM Gun Barrier said
How many times do we have to go over this?
If its not paid for then you shouldn't use it.
Reply
If its not paid for then you shouldn't use it.
Posted: Jan 15th 2010 2:37AM CaramelZappa said
I completely agree. I think pirating is scummy at best and I hate all the stupid excuses like "I wouldn't have bought it anyways" or "This company is greedy so they deserve to be pirated" All bullshit when the real reason is the pirate is greedy. But that doesn't mean the logic that every pirated copy is a lost sale is sound.
Reply
Posted: Jan 15th 2010 8:09AM (Unverified) said
personally i reverse-pirate, paying a penny whenever possible on those pay-what-you-want sales so it actually costs them in bandwidth.
HOOAH!
Reply
HOOAH!
Posted: Jan 15th 2010 10:03AM Otimus said
I think you're missing the point he had. He's not defending piracy. He's just saying that pirates probably wouldn't have bought it anyway. I tell you what, 75% of anything I'd have pirated, I wouldn't have bought. When you're practically told you can have anything you want for free, you pretty much are willing to try anything... ANYTHING.
Reply
Posted: Jan 15th 2010 1:27AM (Unverified) said
I'm not for piracy of crap like this, but, I think the only real reason this happened is due to the actual cost of the phone.
But then again everything is expensive when it comes to Apple. Even its pirates.
Reply
But then again everything is expensive when it comes to Apple. Even its pirates.
Posted: Jan 15th 2010 1:31AM Premature ejaculation man said
I'll sayit again. This is pretty low considering how cheap iPhone games are. Joystiq just had an article about how so many apps are being sold at 99 cents and people STILL can't afford this? There's clearly a mentality that I haven't considered when it comes to pirating. On top of all this the more expensive apps regularly have sales.
On another lighter note, I always love that baby pirates picture. The poor little one :P
Reply
On another lighter note, I always love that baby pirates picture. The poor little one :P
Posted: Jan 15th 2010 1:40AM BananaBoat said
Especially considering that these people have shelled out the money for an Iphone. I'm on my second Iphone, and second contract at this point, and I've probably put in over 500 dollars just on the contract. It's not like kids are using these things (unless their parents are out of their minds) so it must be 20 somethings and 30 somethings doing all the pirating.
I'd say I'm surprised, but there are still people unwilling to buy DRM free music for a dollar. With the younger generation it seems to be an entitlement issue, but with those 20-30+, it seems to be a mental block that exists in peoples brains (like a ticker that reads "You can have this for free! Don't pay for it!")
Reply
I'd say I'm surprised, but there are still people unwilling to buy DRM free music for a dollar. With the younger generation it seems to be an entitlement issue, but with those 20-30+, it seems to be a mental block that exists in peoples brains (like a ticker that reads "You can have this for free! Don't pay for it!")
Posted: Jan 15th 2010 11:42AM aristokrat said
Since you can now get iPhones starting at $100 now, parents aren't out of their minds getting them for their kids, especially when it's liking buying a phone and an iPod (meaning you're saving money overall).
Reply
Posted: Jan 15th 2010 1:33AM BananaBoat said
If devs start to DRM their games on the Iphone, I'm out. Most of these devs are one or two man outfits which begs the question "how will they maintain a DRM server?". If they go out of business, is the game suddenly not going to work?
People pirating Iphone games are douchebags. There is no way around that. People that actually pay for their games shouldn't have to suffer though. DRM is somewhat understandable on the PC, since services like Steam will (theoretically) be around for many years to authenticate your copy of the game, but since the same can't be said for Iphone developers or whatever DRM solutions they'd implement, they should just leave their games as they are.
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People pirating Iphone games are douchebags. There is no way around that. People that actually pay for their games shouldn't have to suffer though. DRM is somewhat understandable on the PC, since services like Steam will (theoretically) be around for many years to authenticate your copy of the game, but since the same can't be said for Iphone developers or whatever DRM solutions they'd implement, they should just leave their games as they are.
Posted: Jan 15th 2010 1:35AM thinkthis said
I read this study and they assume that only 10% of pirated apps would actually have been purchased. The total value of pirated apps exceeds $4 billion dollars. I'm actually one of those people that spends money, something I was surprised I enjoyed doing, on the app store. .99 so a game I love can get updated or a sequel is a small price to pay.
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Posted: Jan 15th 2010 1:45AM grimone said
Here's a more realistic take on the situation:
http://arstechnica.com/apple/news/2010/01/450-million-iphone-piracy-figure-not-grounded-in-reality.ars?utm_source=rss&utm_medium=rss&utm_campaign=rss
Reply
http://arstechnica.com/apple/news/2010/01/450-million-iphone-piracy-figure-not-grounded-in-reality.ars?utm_source=rss&utm_medium=rss&utm_campaign=rss
Posted: Jan 15th 2010 10:13AM Gib said
This. Even TÚAW did a breakdown on their bogus numbers when this report broke... http://www.tuaw.com/2010/01/13/pirates-make-away-with-450-million-in-app-store-booty/
"Their analysis is based on several assumptions, however, any one of which could easily be wide of the mark. They argue that with three billion downloads on the App Store (not an assumption), 17% of those are paid apps (assumption), with a piracy rate of 75% (assumption), and the number of pirate downloads at 1.53 billion. If the average price of a paid app is $3 (assumption), then there's $4.59 billion in losses. Assuming that only about 10% of the pirates who downloaded apps would have actually bought them, that makes the total $459 million.
"According to 24/7WallSt.'s numbers, out of a rough total of 75 million worldwide iPhones and iPod touches, a mere 3 million devices are responsible for the 1.53 billion apps 24/7WallSt. is claiming have been downloaded illegally. For those of you calculating along at home, that works out to an average of 510 pirated apps per device. That snap you just heard was suspension of disbelief."
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"Their analysis is based on several assumptions, however, any one of which could easily be wide of the mark. They argue that with three billion downloads on the App Store (not an assumption), 17% of those are paid apps (assumption), with a piracy rate of 75% (assumption), and the number of pirate downloads at 1.53 billion. If the average price of a paid app is $3 (assumption), then there's $4.59 billion in losses. Assuming that only about 10% of the pirates who downloaded apps would have actually bought them, that makes the total $459 million.
"According to 24/7WallSt.'s numbers, out of a rough total of 75 million worldwide iPhones and iPod touches, a mere 3 million devices are responsible for the 1.53 billion apps 24/7WallSt. is claiming have been downloaded illegally. For those of you calculating along at home, that works out to an average of 510 pirated apps per device. That snap you just heard was suspension of disbelief."
Posted: Jan 15th 2010 1:55AM (Unverified) said
Radical concept- Stop encouraging people to jailbreak their phones by locking out basic functions like playback of non-blessed Apple formats. If Apple allowed VLC/Divx/Xvid/FLAC etc on their devices, then the people that want to load the TV series they downloaded (yes, illegallY) onto their phones wouldn't have jailbroken them for the purpose. Allow people to *gasp* use the phone as a flashdrive, and freely copy things back and forth like a normal MP3 player
I know Lord Stevie won't have any of this mind you
Reply
I know Lord Stevie won't have any of this mind you
Posted: Jan 15th 2010 2:07AM Problem Medic said
It's apple you're talking about here. They'll never do anything like that.
EVER.
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EVER.
Posted: Jan 15th 2010 2:16AM XLM said
Radical concept, companies exist to make money.
Guess what, Apple wouldn't be able to rent/sell on their store if they did support those files. They probably weighed being "net cool" with being able to offer movies for rent/sale and went with the one that would make them more money.
I would to.
Just convert your pilfered movie and be done with it, or buy a different phone.
I agree on the flash drive point.
Reply
Guess what, Apple wouldn't be able to rent/sell on their store if they did support those files. They probably weighed being "net cool" with being able to offer movies for rent/sale and went with the one that would make them more money.
I would to.
Just convert your pilfered movie and be done with it, or buy a different phone.
I agree on the flash drive point.
Posted: Jan 15th 2010 2:12AM hpdarkness said
If Apple actually included a demo for every app, like a trial period of just 2 hours I would buy more apps. When I first got my iPhone I spent $50 on apps that ended up being complete shit, so I started pirating apps, then I buy the ones I actually like (Tweetie, 360 Live, Hitchcock, etc)
Reply
Posted: Jan 15th 2010 3:35AM DarknessBear said
@BlackRon - I honor your honesty that you are a dirty ass messed up scum bag. And you aren't hiding behind all these TERRRRRRIBLE excuses (like 95% of pirates do). But, you are still an idiotic douchebag and I hope you get all of your shit stolen in the future.
Reply
Posted: Jan 16th 2010 2:47AM DarknessBear said
Haha, I'm sorry evo! I miss fired my comment... I'm sorry you took the friendly fire.
Reply
Posted: Jan 15th 2010 2:21AM BlackRonin357 said
All you whiners need to take a real look at the issue! Why pay for something, when you can get it for free! I had 2 jailbroken iPhones and an ipod touch and rarely paid for any game or app that wasn't worth its coding. I dl'ed so many games and apps its ridiculous, but would I have bought any of them, HELL NO! Why you ask, cuz I'm not gonna go wasting my money on every game or app that comes out. Would you pay for a Bentley GT or Audi R8 (if you could) when you could very easily take it right off the lot w/ no negative consequences ever happening. I would!
My morals while different are based on a survivalist theory why pay for it when you get it for free! If a hottie walked up to you and just threw her self at you to have sex w/ no hangups alot of you p****** would have a heart attack! When a good thing comes take it and make the best of it, cuz when its gone, its not gonna come back for a long time!
I wave my pirate banner high!
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My morals while different are based on a survivalist theory why pay for it when you get it for free! If a hottie walked up to you and just threw her self at you to have sex w/ no hangups alot of you p****** would have a heart attack! When a good thing comes take it and make the best of it, cuz when its gone, its not gonna come back for a long time!
I wave my pirate banner high!
Posted: Jan 15th 2010 2:39AM CaramelZappa said
Shit, it won't let me downvote you more than once.
Reply
Posted: Jan 15th 2010 7:21AM (Unverified) said
If a hottie walks up to you and throws herself at you to have sex, she prolly has AIDS..
That's all you, man..
Reply
That's all you, man..
Posted: Jan 15th 2010 2:43AM (Unverified) said
Apple is about control, first and foremost. Always have been. I don't even have the thing, but the vast majority of App piracy i've seen has germinated from the "I can do that too?" scenario.
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Posted: Jan 15th 2010 8:39PM (Unverified) said
The mass majority of apps are CRAP! I have a lot of programs on my phone that just plain suck and I don't use. Just too lazy to delete them, or think maybe i'll give it more of a try some day... But when I find myself using an app daily or hours at a time, YES I BUY IT. There will always be jerks who will laugh hahha I got it free and be proud of it. But there are many of us who do buy it.
I am not new to "warez" I come from the days of the C64 (27 years).
Just because I pirated an app does NOT mean I would have bought it if it wasn't free, but I do believe in supporting the developers, it is the same stupid logic the RIAA and MPAA have.
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I am not new to "warez" I come from the days of the C64 (27 years).
Just because I pirated an app does NOT mean I would have bought it if it wasn't free, but I do believe in supporting the developers, it is the same stupid logic the RIAA and MPAA have.
Posted: Jan 15th 2010 2:54AM (Unverified) said
Minor flaws in argument:
the only reason jailbreaking iphones became popular was that (a) there was no iphone app store when it launched, and (b) it was tied to one provider that no-one wanted.
If it wasn't for the jailbroken phones that showed the demand for these kind of apps, we might never have gotten the app store, and the devs wouldn't have the option to make money. If it had been offered on an open contract then we might never have gotten the jailbreaking either.
It's more hassle to jailbreak a phone than pay $0.99 for an app....
And if you're getting $$$$ for an iphone app of wobbly boobies, you should probably be grateful, not worrying about the people who didn't pay for it.
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the only reason jailbreaking iphones became popular was that (a) there was no iphone app store when it launched, and (b) it was tied to one provider that no-one wanted.
If it wasn't for the jailbroken phones that showed the demand for these kind of apps, we might never have gotten the app store, and the devs wouldn't have the option to make money. If it had been offered on an open contract then we might never have gotten the jailbreaking either.
It's more hassle to jailbreak a phone than pay $0.99 for an app....
And if you're getting $$$$ for an iphone app of wobbly boobies, you should probably be grateful, not worrying about the people who didn't pay for it.
Posted: Jan 15th 2010 8:48PM (Unverified) said
It's more of a hassle to jailbreak an Iphone? Connect Iphone to computer, click blackr1n, done. If that is too hard for you, you might want to get rid of your iphone and get a cat instead.
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Posted: Jan 15th 2010 3:29AM DarknessBear said
Omg... pirates, just hang yourselves. That is your new excuse? And I call total BS that you paid $50 on Apps and they were all garbage so that is why you pirate. It is because you are a cheap ass and you don't give a shit about the small developers.
Bah... Pirates, ALWAYS have an excuse. And it ALWAYS sucks.
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Bah... Pirates, ALWAYS have an excuse. And it ALWAYS sucks.
Posted: Jan 15th 2010 3:32AM DarknessBear said
I was going to type out a lengthy rant about how dumb pirates are and how idiotic all their excuses are, but it boggles my mind so much and makes me furious that this is all I got:
wattafasokeraowkrpomwprniaw iprjAWPrio japwo mnaspofj POj wpojapwojapwodjap womawpdo mapwdo madpoamwdopm!?!?!?!?!?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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wattafasokeraowkrpomwprniaw iprjAWPrio japwo mnaspofj POj wpojapwojapwodjap womawpdo mapwdo madpoamwdopm!?!?!?!?!?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Posted: Jan 15th 2010 4:31AM (Unverified) said
Oh for ... sakes!
Just.. stop.. right here. Before you carry on talking about piracy, go to that article and look at how they arrived at that number.
Seriously, go have a look. $450 million. You know what... I can ALSO pull numbers completely out of my ass.
Can anybody find me some numbers based on anything even remotely approaching fact or based on any form of research that did not involve nose picking?
Reply
Just.. stop.. right here. Before you carry on talking about piracy, go to that article and look at how they arrived at that number.
Seriously, go have a look. $450 million. You know what... I can ALSO pull numbers completely out of my ass.
Can anybody find me some numbers based on anything even remotely approaching fact or based on any form of research that did not involve nose picking?
Posted: Jan 15th 2010 5:06AM juggalotusmx said
Ok so now let's talk about overpriced peripherals, Terrible or no customer service at all and pleas let's talk about what happen when your battery dies...
Reply
Posted: Jan 15th 2010 5:10AM DomoBraden said
"Either way you slice it, you have to be a real [negative adjective] to pirate a game that only costs you a few cents."
Agreed. I would say "That, or you're poor like the rest of us scurvy bastards", but if that's the case, how the in the bloody hell did you get an iPhone to begin with? RIDDLE ME THAT.
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Agreed. I would say "That, or you're poor like the rest of us scurvy bastards", but if that's the case, how the in the bloody hell did you get an iPhone to begin with? RIDDLE ME THAT.
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