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· Talk to the Trade
#Market Survey
3 messages in this thread
You're right Ted, this is completely out of control. I understand the next
Reagan/Gorbachev summit will be held to discuss this matter exclusively.
ReRead your message – it sounds like “take take take.'' If all things were
fair there'd be no reason for purchase verification. But things aren't
fair. And six months of more than full time work is a lot to just toss
away. Anyway, offer some constructive opinions and I'll be glad to listen.
That's why I posted the message in the first place. If you can think of
something better, tell me.
Perry
Ok Perry, I'm going to take this completely apart and put it together
again.
I realize that you've given this a great deal of thought and that it
bothers you quite a bit, but frankly speaking, you're creating many of your
own problems.
There is a natural and understandable tendency on the part of developers to
want every potential user to purchase his/her own copy of software. Nice,
fair, profitable, predictable. Not at all realistic. Let me make several
points here:
1) This is a marketplace. It is anything but FAIR. That doesn't mean it
can't be functional, profitable, manageable, productive. An in many ways
it is quite predictable, if common sense is used.
2) The software business in particular is different from other types of
marketplace endeavors. All the costs are up front in design and lead-time.
Very few costs follow distribution. The financial strategies must be
planned accordingly.
3) This notion of ultimate control of end use by software companies is
absurd. Fine, your copyright protects you from unauthorized duplication
and re-sale. But, as far as I'm concerned, if I paid for your product, I'll
copy and use it on any machine I own or have access to and in any way I
like.
Now lets look at some of the characteristics of software.
1) Game software has a limited life expectancy. If a product is priced
based on its usefulness to a user, it must sell sufficient copies to cover
development and marketing costs plus profit for the period of expected life
or it is not of sufficient value to be marketed. This is exclusive of any
perceived loss to duplication. There should be no other expected profits,
such as potential purchasers based on number of computers sold etc. Sales
expectations should be based on usefulness and life expectancy.
2) Unauthorized duplication, while to be discouraged, is to be recognized
as a fact of life. Like with all forces, there are good and bad points
about duplication. Being exposed to computers in industry and school, I
can tell you quite honestly that I have never met a person who has used a
computer that has not used a pirated copy at one time or another. To me, a
pirated copy has the effect of advertising. If the product is good, I may
not buy that product, but will probably buy another product by that
company. Let me just say that, as a policy, I buy and don't distribute.
Yes, there are people who only pirate software. You can either continue to
bang your head against a wall trying to stop them, or consider them as an
advertising source for your product while working in general to educate the
public against piracy and possibly using a non-intrusive form of protection
(if in fact there is such a thing to be found). Games, unfortunately, will
always be a pirating target because of their short life and high user cost
based on quantity over time.
3) To businesses that expect to remain in a marketplace, values such as
customer satisfaction, service reputation, innovative features, frequently
have more importance than wasting time and bad publicity by attacking the
public and battling over real or imagined losses in potential revenue. In
other words, if the profits in hand are not sufficient, then complaining
isn't going to increase the profits. Use business sense. Decrease costs,
increase market size by increasing utility, make more products (especially
those that build on other products), diversify, and advertise (educate).
4) Utility software is in a difderent situation. Long life, complicated
functions, and the necessity for flexibility, mean that these products can
be profitable with a higher user cost and for a longer time. They also
create the potential for accessories and add-ons. Therefore, these items
should always be free from any copy-protection. While not fast movers,
they are a steady source of income.
5) If you compare the software industry with its high initial cost and low
distribution costs, with the manufacturing industry with its constant
costs, you can see where the greed for the easy money down the road
distorts your long term values which the manufacturing industry must live
with daily.
As a final thought, I really wish people would stop this pre-occupation
with pirates and controlling end users, and treat software as a patented
tool, which it really is. We can't duplicate it and sell it, but we should
be able to use it in any manner that we see fit. We should also have the
same relationship with the software vendor as with the tool vendor;
technical support and product warranty. I also wish that this would be the
end of this subject once and for all. If you can't agree with these
feelings, Perry, than you really shouldn't be in the business.
Ted
Ok Perry, I'm going to take this completely apart and put it together
again.
I realize that you've given this a great deal of thought and that it
bothers you quite a bit, but frankly speaking, you're creating many of your
own problems.
There is a natural and understandable tendency on the part of developers to
want every potential user to purchase his/her own copy of software. Nice,
fair, profitable, predictable. Not at all realistic. Let me make several
points here:
1) This is a marketplace. It is anything but FAIR. That doesn't mean it
can't be functional, profitable, manageable, productive. An in many ways
it is quite predictable, if common sense is used.
2) The software business in particular is different from other types of
marketplace endeavors. All the costs are up front in design and lead-time.
Very few costs follow distribution. The financial strategies must be
planned accordingly.
3) This notion of ultimate control of end use by software companies is
absurd. Fine, your copyright protects you from unauthorized duplication
and re-sale. But, as far as I'm concerned, if I paid for your product, I'll
copy and use it on any machine I own or have access to and in any way I
like.
Now lets look at some of the characteristics of software.
1) Game software has a limited life expectancy. If a product is priced
based on its usefulness to a user, it must sell sufficient copies to cover
development and marketing costs plus profit for the period of expected life
or it is not of sufficient value to be marketed. This is exclusive of any
perceived loss to duplication. There should be no other expected profits,
such as potential purchasers based on number of computers sold etc. Sales
expectations should be based on usefulness and life expectancy.
2) Unauthorized duplication, while to be discouraged, is to be recognized
as a fact of life. Like with all forces, there are good and bad points
about duplication. Being exposed to computers in industry and school, I
can tell you quite honestly that I have never met a person who has used a
computer that has not used a pirated copy at one time or another. To me, a
pirated copy has the effect of advertising. If the product is good, I may
not buy that product, but will probably buy another product by that
company. Let me just say that, as a policy, I buy and don't distribute.
Yes, there are people who only pirate software. You can either continue to
bang your head against a wall trying to stop them, or consider them as an
advertising source for your product while working in general to educate the
public against piracy and possibly using a non-intrusive form of protection
(if in fact there is such a thing to be found). Games, unfortunately, will
always be a pirating target because of their short life and high user cost
based on quantity over time.
3) To businesses that expect to remain in a marketplace, values such as
customer satisfaction, service reputation, innovative features, frequently
have more importance than wasting time and bad publicity by attacking the
public and battling over real or imagined losses in potential revenue. In
other words, if the profits in hand are not sufficient, then complaining
isn't going to increase the profits. Use business sense. Decrease costs,
increase market size by increasing utility, make more products (especially
those that build on other products), diversify, and advertise (educate).
4) Utility software is in a difderent situation. Long life, complicated
functions, and the necessity for flexibility, mean that these products can
be profitable with a higher user cost and for a longer time. They also
create the potential for accessories and add-ons. Therefore, these items
should always be free from any copy-protection. While not fast movers,
they are a steady source of income.
5) If you compare the software industry with its high initial cost and low
distribution costs, with the manufacturing industry with its constant
costs, you can see where the greed for the easy money down the road
distorts your long term values which the manufacturing industry must live
with daily.
As a final thought, I really wish people would stop this pre-occupation
with pirates and controlling end users, and treat software as a patented
tool, which it really is. We can't duplicate it and sell it, but we should
be able to use it in any manner that we see fit. We should also have the
same relationship with the software vendor as with the tool vendor;
technical support and product warranty. I also wish that this would be the
end of this subject once and for all. If you can't agree with these
feelings, Perry, than you really shouldn't be in the business.
Ted