Itchyeyes writes "Over the last decade the music industry has all but imploded. Yet we see the film and video game industries following right along in their footsteps today. Evil Avatar Analysts has an article discussing why the game industry needs to avoid these traps, and what they should be focusing on instead. From the article:
A recent study claimed that the US gaming industry lost nearly $4 billion in 2004, 40% of the total $9.9 billion spent on games in the US that year. The gaming industry is basing these numbers on the same false logic as the music industry does though. They count every instance of piracy as a lost sale. As a result, we get people in the industry, like Todd Hollenshead, spreading the doom and gloom message of how piracy is ruining the industry. Like the RIAA's numbers though, these just don't add up."