Fukugawa (2011)

Source Details

Fukugawa (2011)
Title:	How serious is piracy in the videogame industry?
Author(s):	Fukugawa, N.
Year:	2011
Citation:	Fukugawa, N. (2011). How Serious is Piracy in the Videogame Industry?. Empirical Economics Letters, 10(3), 225-233.
Link(s):	Open Access
Key Related Studies:	Hui and Png (2003) Tanaka (2004) Zetner (2006) Liebowitz (2007) Oberholzer-Gee and Strumpf (2007)
Discipline:	D03: Behavioral Microeconomics • Underlying Principles J: Labor and Demographic Economics K: Law and Economics K42: Illegal Behavior and the Enforcement of Law L86: Information and Internet Services • Computer Software O34: Intellectual Property and Intellectual Capital
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About the Data
Data Description:	Questionnaire survey data taken from a sample size of 9970 Japanese video game users (selected from 1,000,000 registered participants) in July 2009 and August 2009. Of the sample, 27.4% possessed both game machines. The composition of the data sample by occupation was: 2.4% junior high school, high school and university students; 61.4% employed workers; 9.7% self-employed; 21.1% housewives or househusbands; and 5.5% unemployed. 54.1% of respondents were male. The average age of each survey respondent was 40.2.
Data Type:	Primary data
Secondary Data Sources:	None
Data Collection Methods:
Data Analysis Methods:	Correlation and Association Regression Analysis
Industry(ies):	Video game publishing
Country(ies):	Japan
Cross Country Study?:	No
Comparative Study?:	Yes
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	2009
Funder(s):	Telecommunication Advancement Foundation

Abstract

Downloading pirated video games enables users of portable game machines to play downloaded video games on a platform without purchasing the original versions. Based on a questionnaire survey, this study is the first to examine how familiar users of portable video game machines are with downloading pirated video games and how this affects whether they purchase genuine versions. The results show that although approximately 40% of surveyed users know how to download and play pirated video games for free, most of them do not actually download pirated versions. Furthermore, no significantly negative relationship can be found between downloading pirated video games and purchasing the original versions.

Main Results of the Study

The study used questionnaire survey data to define how actively two groups of users of portable video game machines (the Sony PSP and Nintendo DS) downloaded pirate video games and purchased genuine versions. Several significant findings were made to codify the extent of user knowledge in acquiring pirate versions of the games and if there were correlative effect on propensity to purchase genuine versions as follows:

• 40% of surveyed users of the Nintendo and Sony platforms know how to download and play pirated video games for free;

• Only 5% of users that know how to download pirated versions of the games actually do so;

• 70% of users that knew how to download and play pirated video games, but did not do so, explained their decision was caused by an inclination to avoid punishment or moral conscience;

• Video game industry assertion that pirate downloaders and 'ordinary' consumers are separate groups is unfounded. Regression analysis indicated that downloaders of pirate games are no less likely to purchase genuine versions;

• Video game piracy is not prevalent and does not have a negative impact on sales of genuine video games.

Policy Implications as Stated By Author

The study helps policy makers and rights holders in the video game industry to understand the behaviour of portable video game users in downloading pirated video games and correlative affect on propensity to purchase genuine versions. Despite serious concerns presented in the videogame industry, the implications of the study are to reveal that piracy is not prevalent and does not have a negative impact on sales of genuine versions of video games.

Coverage of Study

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

Coverage of Evidence Based Policies

Issue	Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size:	9970
Level of aggregation:	Individual data
Period of material under study:	July 2009 and August 2009