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Gaming Industry

In: Business and Management

Submitted By cchupina
Words 392
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The Entertainment Software Association of Canada stated that the computer game industry in the United States and Canada loses up to $3.5 Billion a year to pirated video games. The losses to piracy are equal to about one-fifth of the total value of the video game market (De Weck, 2012). This figure is, of course, a simple estimate as no hard data is available to determine the true value of the losses. However, Industry sources report that in 2005, U.S. retail sales of video game software was $7.0 billion, rising to $7.4 billion in 2006 (Siwek, 2007). These figures indicate a rather substantial decrease in loses that may have a correlation with the economy as well as the decrease in sales.
Another niche within the Entertainment industry that is heavily affected by piracy is the Music Industry ("Who music theft," 2012). To put this problem in perspective how devastating piracy not only to the Gaming Industry, a study by the Institute for Policy Innovation that dates back to 2007 had determined that the accumulative impact of millions of songs downloaded illegally amounts to an annual harm of around $12.5 billion dollars in losses to the U.S. economy as well as more than 70,000 lost jobs and $2 billion in lost wages to American workers (Siwek, 2007).
The negative effect that piracy has in the gaming industry is a global effect. In 2011, the Arabian Anti-Piracy Alliance pointed to a recent report published by AM Mindpower Solutions, which disclosed that at least 73% of actual global revenue from video gaming is lost every year due to piracy with rates increasing while total revenues decrease (Butler, 2011).

Buttler, S. (2011, May 26). At least 73% of actual global revenue from video gaming lost annually due to piracy. Retrieved from http://www.ameinfo.com/266162.html

De Weck, J. (2012, 08 27). Free online games sink pirates for emerging-market growth.…...

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