Does DRM increase profits?

[Anayo]

If anyone knows the answer to this question, please share it with me. I'm really curious to know whether DRM such as online activation, firmware updates, or Ubisoft's "you must stay on line at all times or else" causes an increase in profit for software companies, or if it just makes them "feel" comfortable.

Anyone know?

[Hatta]

It's impossible to know. To really know, you'd have to release the same game with and without DRM into similar markets and measure the difference in revenues. Of course you can't really do an experiment like that, so anyone who claims to know for sure is full of shit.

[AppleQueso]

it's not possible to know definitively, sure, but you CAN use some common sense though. At best, it doesn't affect their profits at all, most likely it affects them negatively (I personally know quite a few folks who refuse to purchase PC games with invasive DRM). If they believe it affects their sales positively, they're living in a dream world.

It's usually just done to please investors though. Doesn't really matter how effective it really is.

[CRTGAMER]

Oh I hadda comment on Digital Rental Management.

A profit for companies, a loss for the consumer. Downloads are volatile, with no normal means of backing up. The games you purchased or rented can't be moved to another console. Or in the eventuality the game is no longer offered for download, and your console dies, so does the purchase. Games purchased on Disc are yours. However there is the beginnings of a terrible precedent of online activation as in Half Life Steam. Additional content also a mixed blessing. Good that new levels and features are made available, bad that maybe should be in the original purchase. Gamestop even part of the act. Buy a reserve for a new game and get exclusive download content. Maybe supposed to be part of the original package? Stuff lost when buying the game later on. Sims did this with all the add on packs, but at least content on disc to keep.

UBISoft's online only even for an offline purchased game is a ripoff.
Site and company will eventually go away, along with the gamer's security deposit.

Sad thing is DRM downloads are part of culture because of ignorant convenience.

[corn619]

I'll keep it short, people who steal will always find a way to steal. The only thing DRM does is keep shareholders happy knowning the product their money is invested in is protected from theft. Thats my take on it anyways.

Besides, what do a bunch of retro gamers care about current console gaming anyways?

[AppleQueso]

Besides, what do a bunch of retro gamers care about current console gaming anyways?

Because, believe it or not, many of us also have an interest in current gen gaming.

Besides, in 5-10 years these games will be considered "retro" in the same way the ps2 is now, we'd like to know that we'll be able to actually play these games in the future.

[Dylan]

I think that we're confusing all gamers as being savvy. Realistically, if there wasn't DRM and any kid could just copy and paste the game onto their friend's computer, then there would likely be a negative effect on sales. I'm pretty sure that people are aware that people are going to steal their software, they're just trying to discourage that (however draconian their methods may be).

[ujnhunter]

From my perspective... No. Considering I won't buy games with DRM. Therefore from my perspective they make nothing from me.

[corn619]

Besides, what do a bunch of retro gamers care about current console gaming anyways?

Because, believe it or not, many of us also have an interest in current gen gaming.

Besides, in 5-10 years these games will be considered "retro" in the same way the ps2 is now, we'd like to know that we'll be able to actually play these games in the future.

It was a joke, lighten up hence the smile face in my post. No need to state the obvious, of course I know people here including myself play current gen games.

[enderfall]

To quantify an "increase of profits" one would need to somehow figure out:

-how many people pirate the game
-how many people stopped pirating because of the "difficulty" in getting around the DRM
-how many people stopped buying the product due to the DRM being a hassle

All three are impossible to put a number on, so I'd have to agree with Corn's comments about appeasing investors.