
Originally Posted by
aurik
On DRM:
Anecdotally, releasing on PC without DRM leads to upwards of 90% piracy rates (source: World of Goo, Game Dev Tycoon, etc--it's an experiment that has been performed often). You can argue that the lion's share of those people wouldn't buy it anyway, but the truth of the matter is that a non-trivial amount of those people, given the choice of not playing it or paying for it, will pay for it.
If you have a 10:1 pirate-authentic ratio, you only need to convert 1 in 20 pirates to see a 50% increase in revenue. Given that almost all your costs in making a game are sunk by the time you are on shelves, a huge amount of that revenue is profit. (I know people will argue that publishers will just pocket the extra money and turn out the same tripe, so if you are about to make that argument stop and go read up on capitalism)
All of a sudden, you can afford to spend a lot more on making a game, and sell it at the same price. That leads to an increase in game quality. Alternatively, it may lead to a decrease in game cost if publishers decide to compete on cost rather than content/quality.