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Piracy May Have Saved the PS3 More Than You Realize

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The title says it all, unless the name of your company is Capcom, Electronic Arts or one of the other major publishers. However if the name of your company is Sony, you’re not exactly hating pirates as much as it might appear on the surface. Piracy hurts two things. First it hurts the publishers who lose out on sales. These exact same game sales lose money for Sony in the form of royalties. So how is this beneficial to Sony in any possible sense when they’re losing royalty money from each game sale? Sony is now making money on hardware. Sure it took a few years and they had to remove features, parts, software and options to do so, but the PS3 is now a profitable piece of hardware. With piracy running rampant across the platform, the hardware is starting to move a lot faster in the western regions of gaming as well.

Should Sony be thanking pirates?

As far as the public knows, Sony is attacking piracy with a vengeance. That’s just good PR (public relations) because Sony has to keep its partners happy. If a major publisher like THQ thought Sony were dragging their feet, it would result in a slowing of, or worse yet, a complete stoppage of releases for the PS3. You don’t move video game consoles, hacked or not, if there are no games being released for it. So while Sony wants to protect their image (and additional profits), they don’t seem to “hell bent” on stopping the pirates. In an effort to stop pirates from using their servers, Sony released firmware 3.56 to combat the hugely popular custom firmware 3.55 which has opened the world of piracy on the PS3 to anyone with the internet, 5 minutes of free time, and a regular USB thumb drive. Sadly the new firmware already has a ton of work-arounds that allow Playstation 3 consoles running the custom firmware 3.55 (CFW 3.55) to spoof the servers with a fake FW 3.56 id.

Pirates are almost never good for gaming companies. The guy who started it all with the PS3, GeoHot, genuinely wanted to explore, learn and share. The torch was picked up and pirates have started running with it. Regardless of whether or not Sony is hard at work to stop the hacking, there’s no denying the huge increase in sales the PS3 has seen. Sony has been able to make up ground lost to the Xbox 360 in almost every area of the world except the US. Sure the Playstation has had some spikes in sales, but just recently the console has really started moving off shelves. As far as Sony is concerned in the US, the PS3 being jail broken so easily without needing a dongle or anything might be the best thing that could have happened. Sony might not like the fact that Killzone 3 is already available to anyone who spends 5 minutes jailbreaking the their console, but it's moving a lot of consoles.

 

Comments  

 
+2 #1 what 2011-02-15 11:29
I think you're overestimating the value of hardware sales. The whole plan of the PS3 and the 360 at the start was to take a loss from hardware to make it up with software sales.

I'm not sure if Sony is still losing money per PS3 made but the sales lost from software hurt a lot.
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0 #2 Jerry Bo-Berry 2011-02-15 11:34
Makes sense. They couldn't hack the PS3 when it was sold at a loss. Now that the hardware is FINALLY profitable, it's suddenly hacked.

Peter Moore once said, "You make the money on the razors, not the blades" when he headed SEGA. Now that the hardware is cheaper to manufacture, Sony is making money on the razor.
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0 #3 Azure Mar 2011-02-15 12:03
I still have no interest in PS3
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0 #4 blackskimmer 2011-02-15 12:28
Ummm no Piracy does nothing to benefit SONY. They makes 10-15 dollars per game on royalties. Those hacked consoles do not buy games. They do not buy PSN titles, they do not buy Plsystation plus. They dont buy anything other then maybe another controller.

It hurts the console holder, hurts the publishers harts the gamers, and harts the people who rely on making games for a living to put food on the table.
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+1 #5 Reigen 2011-02-15 12:34
yes the piracy will help sell ps3 sistems for a short while
but just until the recent slim models sony was selling ps3 sistems with a loss
and now that they are not gaining as much from software sells they may not recower from that financial sacrifice unles they ceep the console price at a regular in the long term
whith other words
thanks to hackers ps3 is NOT seing a pricedrop soon and sony is probably newer gona sell the sucsesor with a compromised price
it goes like this:
hacker stels software - deweloper & publisher now hawe a loss - deweloper forced to cut down resources & publisher forced to raise price - hacker now inflicts higher price upon himself and others - so now hacker stels ewen more - and the proces loops
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-1 #6 MWH 2011-02-15 12:57
the 360 has been hacked day one and yet it outsells the PS3 and still makes software profit, those who still think piracy is hurting the ps3 please explain that to me.
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0 #7 D.Vader 2011-02-15 14:13
@MWH

"the 360 has been hacked day one and yet it outsells the PS3"

The 360 ONLY outsells the PS3 in the USA. No other marketplaces, check your facts.

"the 360 has been hacked day one and yet it outsells the PS3 and still makes software profit, those who still think piracy is hurting the ps3 please explain that to me."

You are making assumptions. You have absolutely NO IDEA what game was profitable and what was not.

We are seeing studios close every day, piracy leads to higher prices for the consumer. So in a way you are correct, piracy doesn't hurt the PS3 it hurts the consumer who will be paying $100 per game next generation.

I am so sick of [censored]s that do not see any value in what developers do. They work hard on these games and deserve every penny they make. Stop biting the hands that feed you idiots!
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0 #8 DevilDogA99 2011-02-15 16:40
First guy that commented is all wrong. The US is the only place that PS3 sells are lower then 360, as well the reason sells have been differant even though 360 has been hacked since day one is becuase by hacking it you really got nothing. With PS3 hacked we can create our own apps and play PS2 games again and run our own video players and so on and so fourth, it being hacked is and will move consoles.
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-1 #9 Kale 2011-02-16 03:30
So what your implying is: because more people want a PS3 so they can pirate games it's good for Sony because they are making money off the hardware.
So what happens then when developers no longer want to make games for a system because it's to easy to pirate for. Just because some ass wants to play his homemade version of pong on his PS3 it means us actual gamers who support our hobby must suffer. Piracy is bad and you sound like a pirate trying to justify your thieving ways
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+1 #10 Leave piracy alonejoe 2011-08-14 12:04
Sony gets what they have had coming to them [censored]ing thieves. You ripped of Nintendo years ago and now you can pay for it [censored]ing hypocrites. Sony is a thief and they criminalize piraters. Ha sounds like a politician.
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