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PC Games (Games) Businesses

Valve Locking Out Gamers Who Buy Orange Box Internationally 665

Via Opposable Thumbs, a post on the Consumerist site notes that some enterprising gamers who bought the Orange Box in a territory different than the one they lived (to save a few bucks) have now found themselves unable to play the game. "One user, Todd, explains that thousands of crafty North American gamers looking for a deal have 'bought the product (and hence, the serial numbers) at well known international game stores' at a significant markdown. Activation of the purchased titles went off without a hitch. However, Valve apparently has taken issue with the region-specificity of some international versions and has begun locking out accounts of those living in North America, but owning international serial numbers with the message that the purchased game is in the 'incorrect territory.'" Worse, folks who tried to 'make it right' by buying a local copy have found they're basically SOL. I've been a big fan of the Steam concept since it launched, but this is the sort of thing you need to communicate to your users before you sting them.
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Valve Locking Out Gamers Who Buy Orange Box Internationally

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  • Silly users (Score:5, Insightful)

    by Anonymous Coward on Thursday October 25, 2007 @06:39PM (#21120719)
    Buying what you want, where you want, when you want at the lowest price you can find is for corporations. Why do users keep thinking globalization should benefit them. It's really silly.
  • And this... (Score:5, Insightful)

    by bigstrat2003 ( 1058574 ) on Thursday October 25, 2007 @06:40PM (#21120731)
    ...is why I didn't like the idea of Steam the first time I heard of it (not this specifically, but the idea of things like this happening). If I bought the game, it's mine, jackasses. They have no right to be disabling people's games after taking their money.
  • by Interl0per ( 1045948 ) on Thursday October 25, 2007 @06:40PM (#21120741)
    Glad I wasn't swayed by all the glowing reviews.
  • by Shivetya ( 243324 ) on Thursday October 25, 2007 @06:41PM (#21120761) Homepage Journal
    to protect deals with distributors.

    Reading some of the various "deal" forums it amazes me what people will go through to save a few dollars, yet turn around and brag about their $300 cases, water cooling, and thousand dollars worth of video cards.
  • by mattbee ( 17533 ) <matthew@bytemark.co.uk> on Thursday October 25, 2007 @06:54PM (#21120937) Homepage
    If you didn't get what you believe you paid for, ask the vendor for a refund. If the vendor refuses or ignores you, ask your credit card company to charge it back to them, and they can pick up the tab for their DRM silliness. I happen to love Steam, but not more than my rights as a consumer. Steam is working very nicely for me now, but I know my rights and if Valve take away my games (which they can certainly do if they feel like it), I am within my rights to charge back everything I've paid them in the last two years, and there's nothing they can do about it. This is the only way to tell companies that their DRM isn't working - be on your guard and don't let vendors forget their responsibilities to play fair.
  • Re:And this... (Score:4, Insightful)

    by setagllib ( 753300 ) on Thursday October 25, 2007 @06:55PM (#21120961)
    Sure they do, they specify it in the EULA. What do you expect from proprietary software? When will you people learn? You seriously think closed source is for keeping secrets? It's for keeping control.
  • by Anonymous Coward on Thursday October 25, 2007 @06:57PM (#21120977)
    So what? Globalization is the antithesis of shutting off markets to foreign participants. "Deals with distributors" just means that the product markets remain closed while the source markets are opened up.
  • They have no right (Score:2, Insightful)

    by Anonymous Coward on Thursday October 25, 2007 @07:01PM (#21121029)
    In my opinion, they also have no right to deny users their right of first sale.

    They also have no right to require an active Internet connection in order for users to play offline, single player games.

    They also have no right to make the game "phone home" every time the user wants to play.

    They also have no right to force-push updates to single player offline games every time the user wants to play.

    But that hasn't stopped them.

    It has just stopped me from buying their games.
  • Wow. You basicly have to ask permission from the company before you can use their products. It is not a matter of "if" this would happen, but more a matter of "when." If you give big companies powers like they, they WILL eventually abuse them.

    I would describe myself as more of a casual gamer, but crap like this (and what happened with Bioshock) makes me want to completely avoid PC gaming entirely and stick just with consoles. My Gamecube will happily play any game I stick into it, without requiring an internet connection.

    I recently re-played my old copy of Fallout (great game, BTW). I would have been completely pissed if I couldn't play it because of some sort of hare-braned activation scheme. What happens if you want to pull out your copy of Orange Box and play it ten years from now? Will you be able to?
  • by Tackhead ( 54550 ) on Thursday October 25, 2007 @07:06PM (#21121109)
    Ah, the Steam/Valve Reality Distortion Field rears its head again.

    It doesn't matter how evil the DRM, when Valve does it, it's OK!

    More than a decade after MPAA invented region-coded DVDs explicitly to protect deals with distributors, it's still an affront to us. But when Valve does it, hey, it's "just something they put something in to protect deals with distributors".

    Product activation and phone-homeware is just as bad an idea when it's called "Steam" as when it's called "Windows Genuine Advantage".

    Cozy deals to fuck over the consumers in favor of artificial segregation of distribution channels are just as defective by design whether they're called "Steam" as when they were called "Region-coded DVDs".

    The Steam may be delicious and moist, but it's still a lie.

    Steam is no triumph.
    I'm making a note here - EPIC FAIL.
    It's hard to overstate dissatisfaction...

    Valve's DRM scheme,
    It does what it must, because it can.
    For the good of none of us, (except the ones who wear suits.)
    But there's no use crying over software that breaks
    You just keep on paying 'till you run out of cake
    And the damage gets done, and the DRM's won
    For the people who are selling lies.

  • by Shados ( 741919 ) on Thursday October 25, 2007 @07:07PM (#21121125)
    Good. Now if everyone would just read that post, the discussion could end. But stupid articles like that hurt companies bottom line without valid reasons. Its just fud. Funny, considering how much slashdotters bitch and moan about fud.
  • Re:And this... (Score:3, Insightful)

    by bigstrat2003 ( 1058574 ) on Thursday October 25, 2007 @07:10PM (#21121155)
    Get off it. I own countless pieces of software which are closed-source, and not one of them (well, except Windows, I'll grant you that one, but we don't judge most companies by Microsoft's actions) can be taken away from me at a moment's notice. Not only are many EULA's supposedly unenforcable (I am neither a lawyer, nor caring enough to research properly, so this is just repeating slashdot hearsay), but they would have to PHYSICALLY COME TO MY HOUSE AND REMOVE THE PROGRAM. If they can do that with impunity, then I hate to point out to you that there are far bigger problems in the world than the open or closed-ness of the software.

    In short, closed source does not fucking mean that you're going to get bent over by every company that makes a program, stop pretending it does.

  • by RonnyJ ( 651856 ) on Thursday October 25, 2007 @07:16PM (#21121231)
    But the companies that supply the boxed version from have nothing to do with Valve directly. Charging back would hurt those companies, not Valve/Steam, in fact it probably helps Steam as it makes the boxed version a less attractive proposition for both buyers and sellers.

    I'm really disappointed in Valve here, but then I guess I shouldn't be surprised.
  • by nlawalker ( 804108 ) on Thursday October 25, 2007 @07:18PM (#21121263)
    People don't mind with Steam because Valve produces the games themselves and then distributes them over Steam, which is their own distribution channel. This is in stark contrast to the notion of the MPAA, which most people view as a body that buys movies direct from the artist for pennies and then turn around and sell them to the public for many times more than that because they can and because they like money. It's much more complicated than that of course, but that's not my point here.

    I don't mind Valve doing it because all the money goes directly to THEM. It is in my best interest that people pay full price for the games, because I like Valve's games, I think they're worth the purchase price and I would like for them to keep making games.

    I am a consumer and I am not screwed in the slightest. But, I didn't try to screw Valve by buying a copy sold for cheap through another distribution channel. I like Steam and would like it to stick around.
  • Re:And this... (Score:2, Insightful)

    by Facetious ( 710885 ) on Thursday October 25, 2007 @07:24PM (#21121333) Journal
    Control is not just about shutting off, as per TFS, but is about much more. As an example, what control do you have over "features" in your software? Are features there to help you do what you want, or are they there to be listed as a bullet point on the software box so the software company in question can sell you an "upgrade."

    I occasionally use a certain closed-source GIS application that has constant version compatibility problems. The company line is "Upgrade." "Buy more." Isn't that about control?
  • by cubic6 ( 650758 ) <tom@losthalHORSEo.org minus herbivore> on Thursday October 25, 2007 @07:29PM (#21121395) Homepage
    "I also find it amazing that in the UK software (and other computer stuff) will retail for the same price as in the US - only in POUNDS. So it's double the price nowadays. Sheesh, I guess CD's are really really expensive to burn in the UK! There's no excuse for this, it's just greed. Valve should not be protecting greed. But then again, it's a racket. Just like the music industry. /rant"

    Considering that this whole situation is because Valve IS adjusting their prices for the local markets, you really have no idea what you're talking about.

    They have retail distributions agreements in Russia and Thailand to sell boxed products at competitive local prices, rather than trying to get people who might earn $300 USD a month to shell out $50 USD for a game. In order to stop people from buying Russian copies en masse for, say, $10 USD a piece and selling the keys online for $20 USD each, they lock the keys to the geographic region in which they're sold. I can't say I've seen the boxes myself since I live in the US, but I've read that they SAY on the box that they won't play outside of country X. Of course, they export the keys anyways and sell them to stupid people who think they're getting a great deal, and that's why we have this retarded article claiming that Orange Box is region locked everywhere.

    Don't give me that shit about "I didn't know it was imported" either. If it seems too good to be true, it PROBABLY IS. The only fault I have with Valve for this is that they should let people unregister so they can register the copies they bought afterwards.
  • by Anonymous Coward on Thursday October 25, 2007 @07:29PM (#21121397)
    Steam games are sold in those countries at a tiny fraction of the US retail cost.

    So the fuck what? Chinese labor costs a tiny fraction of the money that you would have to pay a US worker. That doesn't stop anyone from buying manual labor where it's cheap and selling products at insane markups at home. If you put that genie back into the bottle, we can talk about not buying your products where we want and using them somewhere else. Can't have it both ways.
  • by LiquidCoooled ( 634315 ) on Thursday October 25, 2007 @07:33PM (#21121445) Homepage Journal
    I wonder what would happen if you took your laptop with you on a round the world trip?
    If you connect via wifi your IP will report you being in X country and will this prevent you from playing overnight in the hotels?

    This stinks, if the account is valid, why the fuck are people buying it again - I know I wouldn't.
  • by Opportunist ( 166417 ) on Thursday October 25, 2007 @07:33PM (#21121459)
    Of course it's territory protection. But, bluntly, why is this legal? I can't go to a company and force them to keep my job here instead of outsourcing it to China. Why is it legal for companies to benefit from a global market but not for the customer?

    And yes, what's wrong with buying abroad to save money and spend that money on something else? That's like saying that companies do something wrong when they produce dirt cheap in the far east and brag that they had another record profit year and could seriously increase the benefits for their shareholders.
  • by brkello ( 642429 ) on Thursday October 25, 2007 @07:51PM (#21121681)
    What the hell are you talking about? Reading comprehension (or if you are in this situation, comprehension in general) is not your strong point. People tried to rip off Valve by buying region locked keys from Russia or Thailand where they are sold extremely cheap. Valve shut them off for being the little jerks that they are. The people then went out and did the "right thing" and bought the game legitimately through places like Circuit City. But when they tried to activate it, they already had a CD key in its place and were unable to install it on that steam account.

    Now, I am not sure why you can't remove the CD key. I imagine they did it for piracy regions so people couldn't try multiple cd key to see which ones worked. This seems reasonable to me. This is a story of cheap people trying to rip off a company and getting screwed over because of it. I don't feel sorry for them at all and am confused why Slashdotters defend these morons. Yeah, I understand DRM is bad and annoying. But from a corporate standpoint, this looks like Steam is a DRM success because it is able to block people who try to abuse the system. The people can still play their game on another Steam account or get their money back one way or another.

    The only thing that looks bad for Valve at this point is their customer service. Should people who now rectified their wrong doing by buying a copy be able to play? I think so. But right now it may not be technically feasible with the way the software is designed. I'd give Valve a few days to analyze the problem and decide how (or if) they will fix it.
  • by Anonymous Coward on Thursday October 25, 2007 @07:53PM (#21121719)
    I understand what you're saying, but why is it fair for companies to get cheap labor from other countries when it isn't fair for us to get cheap video games from other countries?

    It all amounts to the same thing, and if it is allowed in one context, it should be allowed in the other. Conversely, if companies insist on being able to do price fixing like this, it shouldn't be legal for them to go over to China and pay somebody 10 dollars a day to do the work when there are Americans over here willing to do it (although the American will of course want a higher wage).
  • by Gabest ( 852807 ) on Thursday October 25, 2007 @07:55PM (#21121731)
    Strange, electrical appliances are also region locked (110/220V), but people just buy a special "hacking device" to convert the voltage. I'm surprised no authories have gone after them yet.
  • Re:And this... (Score:2, Insightful)

    by Anonymous Coward on Thursday October 25, 2007 @07:59PM (#21121785)
    I looked at the EULA of Steam, and then took a look at their support forums. I don't like the fact they can pull your access at anytime to your whole collection of games, without any recourse, just by saying "oops, something you did got you banned with VAC. Nope, we won't say what did it, and no, you will NEVER get access back. Format your computer's hard disk and re-buy all games, peon."
  • by NMerriam ( 15122 ) <NMerriam@artboy.org> on Thursday October 25, 2007 @08:04PM (#21121857) Homepage

    Do you think people should be able to buy 500 copies of the the Thai version for the equivalent of $5 USD each, and turn around and sell the keys online for $20 a piece, and have them work just as well as a $50 US key?


    Well, yes, why not? Wal*Mart can buy shoes from Thailand for $5 and sell them here for $20, when American-made shoes of the same quality and materials would cost $50. That's supposed to be a good thing, at least that's what we tell the Americans when we close down all the shoe factories here because the shoes are cheaper from Thailand.
  • by NMerriam ( 15122 ) <NMerriam@artboy.org> on Thursday October 25, 2007 @08:08PM (#21121899) Homepage

    People tried to rip off Valve


    Really? The article I read said they bought the game for the price Valve asked for.
  • by RonnyJ ( 651856 ) on Thursday October 25, 2007 @08:09PM (#21121913)
    Your point is that in Russia and Thailand they sell the products at significantly lower prices due to lower average incomes.

    His point is that, in the UK, prices are significantly higher, even though incomes are not drastically different than those in the US.
  • Re:Silly users (Score:2, Insightful)

    by Anonymous Coward on Thursday October 25, 2007 @08:11PM (#21121947)
    1. Setup proxy in Thailand
    2. Advertise service to SOL'd steam users
    3. Profit
  • by Marful ( 861873 ) on Thursday October 25, 2007 @08:15PM (#21122005)
    The problem is, that apparently to Valve, the product is worth $10 USD in wherever, but some how $50 USD in the US.

    By selling the product at $10USD in a foreign market, it is shown that the product still generates profit (or they wouldn't sell it that low).


    So the issue becomes that of "How much can they rape the local market for?"

    Violating Regional Licensing or whatever cannot possibly "hurt" a company, if the company would lose money selling it in the US at $10 a copy, there is no way they are going to sell it for $10 a copy in Russia. At worst the company won't make as much profit as they want. Either way they still make some profit.
  • Re:Silly users (Score:3, Insightful)

    by MrSteveSD ( 801820 ) on Thursday October 25, 2007 @08:39PM (#21122329)
    Absolutely. The same goes for foreign competition. When you or I are threatened by cheaper workers overseas/outsourcing, we are told that it's tough and it's a harsh business reality etc. Yet when the same companies are threatened by foreign competition, they go complaining to the government, who very often take action to protect them and use our money to do it!
  • Re:And this... (Score:2, Insightful)

    by Anonymous Coward on Thursday October 25, 2007 @08:43PM (#21122377)
    Well, this is very last century. Now, more and more apps require to be connected to the net, and slowly but surely, proprietary software will require some additional remote component (aka license server) to work.

    They won't have to come to your home to remove the program. They'll be able to turn the switch remotely. Like windows does. Or like steam does.
  • by NMerriam ( 15122 ) <NMerriam@artboy.org> on Thursday October 25, 2007 @08:50PM (#21122447) Homepage
    You never addressed it at all, you just called everyone buying the gray-market games a lot of names and said they were ripping off Valve.

    Valve was selling a product for a price, and a lot of people bought it for that price. If Valve wanted more money, they should have charged more money. You can't be "ripped off" if people are paying the retail price for your goods.
  • by cubic6 ( 650758 ) <tom@losthalHORSEo.org minus herbivore> on Thursday October 25, 2007 @09:21PM (#21122771) Homepage

    This is false -- they bought keys from companies that bought Thai/Russian retail boxes and sell them online. The deal that I found (Already bought the 360 version, so I didn't get it) was from a well-known Thai vendor selling the key at the regular Thai price -- and they would ship the disc/box to you with it if you wanted it. There was no scam, there was no middleman, and no indication (other than in the novel-length EULA) that this was anything other than a good deal.

    The scam was that they didn't tell you that the keys were region-locked, which is stated ON THE BOX in those regions. It's possible that they didn't even bother to look at the box, but in that case they're just idiots, not scammers.

  • by anlprb ( 130123 ) on Thursday October 25, 2007 @09:42PM (#21122959)
    I am well paid and I have lots of disposable income. Guess who lost a nice chunk of that revenue stream? They haven't had me as a customer since steam. I have the first version of Half-Life that doesn't require steam. That was where they lost me. Treat me like an equal in the transaction, we can talk. Treat me like a thief at every turn, I walk away. And they won't know how many of my friends and relatives I have convinced that way as well. Word of mouth is wonderful advertising, or a horrible fire you can't stop.
  • by Marful ( 861873 ) on Thursday October 25, 2007 @09:52PM (#21123057)

    No, they'd lose money if they sold it at $10 EVERYWHERE. They make maybe $2-3 per copy sold in Russia... almost not even worth the effort. If they only made $2-3/copy sold everywhere, they'd need to sell 15-20 million units just to break even. That would be an astouding number of sales for ANY game, and unachievable, even for Valve.
    If it was "amost not even worth the effort" it wouldn't be done. And $2-$3 profit on something that costs $2-$3 to manufacture (in america, I bet it would be cheaper in 3rd world countries) is 100% profit.

    By your logic, they should either sell it at $10 everywhere and lose massive amounts of money (i.e, they get screwed), or not sell it in markets where they have to mark it down to make it affordable (customers in those markets get screwed).
    They are not "losing massive amounts of money" by selling at $10, else they would not be selling it at $10. The only things sold as a "loss" are "loss leaders". Things that go on special a lot at grocery stores, video game consoles such as the xbox and crappy sports accessories. Valve has no need of "loss leaders" and in the PC gaming market there isn't much sense for loss leaders as a business model outside of actual retail establishments (gamestop, brick and mortar stores, etc.)

    God forbid your sense of entitlement be trampled on by a company wanting to both make money by offering you a great product for a good price, and to only make a tiny profit offering that same great value to others who can barely afford it.
    Whoops! There goes a little ad hominen! Obviously *I* have a "sense of entitlement" *rolls eyes* considering I purchased it from vavle themselves via steam because I wanted to support valve despite knowing I could get it at a reduced price from another country.

    Your basic position is that not making A LOT of profit and instead making LESS THAN A LOT of profit is the equivalent of "losing money."

    Never mind the fact that by regionally isolating a product you can bypass normal Supply & Demand dynamic.
  • by Torvaun ( 1040898 ) on Thursday October 25, 2007 @09:54PM (#21123071)
    Because you can't afford a politician. That's why.
  • by Ren.Tamek ( 898017 ) on Thursday October 25, 2007 @10:11PM (#21123237) Homepage
    "I would describe myself as more of a casual gamer, but crap like this (and what happened with Bioshock) makes me want to completely avoid PC gaming entirely and stick just with consoles. My Gamecube will happily play any game I stick into it, without requiring an internet connection."

    Oh ok. Want to play an obscure RPG based on your favourite cartoon series? Nope! That's only for the Japanese market, not you, you silly overseas buyer. But it's ok, it's in Japanese anyway, so no big loss. But hey, there's a version out in the US now, and it's translated into English! Want to import it now? Nope, you can't! That's only for the US market, you silly PAL territory buyer.

    That is why I can barely stand to play console games any more. You can buy a copy abroad, in English, and physically hold in your hands your legitimately purchased product, but if you put it in your machine it won't work, because you need a PAL version. But there is no PAL version, and there never will be. Why won't Sony and Nintendo let me give them money for the stuff they are selling which I want to buy?

    At least with PC gaming if you get crap like this there's a cracked version of the single player games on the net within 24 hours of release.
  • by dinther ( 738910 ) on Thursday October 25, 2007 @10:17PM (#21123293) Homepage
    Never bothered to buy Half-life because of the steam thing. If at all possible (With games always possible) I will not buy software that locks to specific hardware. This, because I don't trust any company to be around long enough to issue me new license codes when I change PC hardware so if I buy software I always download a pirated copy as a backup from torrent. That is my insurance. I have had an issue with the racing game "Live for speed" . This games uses an activation server for which I bought a license and subsequently lost the license code. I emailed them, send my registration credentials transaction details but they won't even reply so $100 or so down the drain. You don't see your local supermarket come around to take back your groceries when you change your pantry door do you?
  • by Sycraft-fu ( 314770 ) on Thursday October 25, 2007 @10:27PM (#21123411)
    They fail some critical parts of contract law:

    1) Contracts must happen before the deal. Contracts cannot be ex post facto. This is why you sign contracts before you buy a house or car, and why people talk about prenuptial agreements. If it doesn't happen before the exchange, it isn't valid. All terms must be agreed upon up front by both parties, you can't tack them on later. Since EULAs don't come up until after you bought the software, they aren't enforceable.

    2) Along those lines contracts must involve an exchange. There's no such thing as a one sided contract. No exchange, it's not a contract and not legal. That's why if you do something like quit your claim to a piece of property to give it to someone else the contract will read (I, yournamehere, for the sum of ten dollars and other valuable consideration do hereby quit all claim..." and so on. Without that exchange in there, it's not legal, even if the intent is just to give it to them.

    3) A contract must be open to negotiation. You are not allowed to make it a one sided thing of "Here it is, you have to accept it as is and I won't talk to you." You HAVE to negotiate. You don't have to accept what the other side wants, but you have to be available to the negotiations. You either have to be able to meet with them, or they have to be able to send you a modified contract and so on that you can then review and accept or reject. Well you can't do that with EULAs so again, they aren't contracts.

    4) There are various rights you cannot give up. You cannot, for example, sign yourself in to slavery. I can draft a contract that says you'll be my slave, it can be an exchange, we can negotiate it, and you can sign it. You still aren't my slave, you can't sign away that right. EULAs often say you are giving up rights you can't sign away. That clause in unenforceable and having blatantly unenforceable clauses is a great way to have the whole contract tossed.

    EULAs are just companies being stupid. Half of it is usually shit they don't have to say, like "You can't copy this." Well duh, that's copyright law, don't need a contract for that. The rest is irrelevant because you already bought the software, it's way too late for them to restrict it. They want a cotnract, they need to get one beforehand.

    With some major packages, that'll happen sometimes. We've bought engineering software that required a signed contract. That one is enforceable. You sign a contract prior to the sale agreeing to terms of the sale, that's legal. However EULAs aren't. That is the reason why our lawyers, who have to be very careful since we work for the state, tell us not to worry and just click through. However real contracts we may not sign, those have to be sent over to legal and generally get torn apart.
  • by mrchaotica ( 681592 ) * on Thursday October 25, 2007 @10:45PM (#21123573)

    but there's also nothing wrong with a company selling abroad with terms of its choice, including licensing restrictions you might not like

    WRONG! The company in question has to, at the very least, disclose those licensing restrictions! And even then, since they're selling (not "licensing," regardless of their BS claims), such restrictions aren't legal anyway!

    Imagine if you bought a shirt while you were on vacation in another country. Then you try to wear the shirt after returning home, and the manufacturer comes and rips it off your back and refuses to let you wear it because he thinks you should have paid more by buying it locally. Is that wrong? Fuck yes, it is! AND VALVE IS DOING EXACTLY THE SAME THING!

  • by mrchaotica ( 681592 ) * on Thursday October 25, 2007 @11:08PM (#21123787)

    DRM isn't all evil.

    Yeah it is.

    DRM in the case of Steam gives you MORE rights than you have otherwise.

    No, Steam (not it's DRM) gives you more convenience than you have otherwise. Convenience != rights.

    Steam is incredibly customer friendly.

    We'll assume for the purposes of this discussion that this is true (although I disagree), but even so, that's despite the DRM, not because of it!

    In fact the publishers hate Steam because it removes the middleman, puts more $$ in the hands of the game companies...

    Note: DRM is not necessary for this.

    ...and gives you more rights to install the software than the traditional EULA of any game ever gives you.

    EULAs are unenforcible and irrelevant. Steam's DRM does not give you more rights than the Doctrine of First Sale; on the contrary, it gives you significantly fewer rights!

    well unless you take your position that DRM is evil without regard to the law or logic.

    Oh yeah? What "law or logic" claims that DRM is good?!

    DRM on products that have never been traditionally licensed (ie music and movies) and DRM applied to licensed products (software) are completely different games.

    Bullshit! There is no difference between stuff like music and stuff like software. Sure, one dumb-ass judge set a bad precedent, but that makes the distinction no less ridiculous!

  • Re:Screw steam. (Score:2, Insightful)

    by justinlee37 ( 993373 ) on Thursday October 25, 2007 @11:31PM (#21123963)

    Why the hell would I pay that much money for a game so I can get screwed by a DRM system that has done nothing to hamper piracy of the games in question?

    Actually, Steam does a LOT to hamper piracy. It's far more effective than other company's solutions.

    The key is that Steam requires you to connect to their online server in order to decrypt the game's files ... sure, eventually someone will crack the encryption, but it takes a lot longer to do so. What's more, a lot of Steam's games are online multiplayer only, which means that unless you have a cd-key that was validated by Valve, you can't play the game even if you get around the encryption. It's only possible (and even then, difficult) to pirate single-player versions of Steam material.

    Additionally, I don't see how you're "getting screwed" by Steam. The prices are all at market price (or in some cases, slightly lower than market price), and the client itself is very unobtrusive. Now, throw in the fact that you can install Steam on any computer, log on with your username, and start downloading any of the games that you've previously paid for, and suddenly buying a game on Steam seems more attractive than buying a physical disc. After all, discs can break, and if you don't back them up, you're fucked.

  • by Monkeyboy4 ( 789832 ) on Thursday October 25, 2007 @11:35PM (#21123991)
    Umm...It is either sold for a profit at 10$US or it is not. If the lower price is subsidized by the higher price in other countries (say it costs 15$US) than it is not being sold for a profit at 10$US. It is sold for a loss, but they deem the loss acceptable. more likely, they have made the cost of production and are now just selling it for whatever they can get from everywhere. It's not subsidized - that is a model from selling physical goods, not software. Video games sales works like movies sales - once costs are covered, all it is is profit.
  • Why Screw steam? (Score:2, Insightful)

    by Shade of Pyrrhus ( 992978 ) on Friday October 26, 2007 @12:05AM (#21124245)
    I got 10% off by buying through Steam before it came out, so I don't know what your quarrels with Steam are. I had the TF2 beta just like everyone else who bought the Orange Box for 10% off. I unlocked the Orange Box the very morning the game was released, and was able to play immediately. What's so wrong with this? Instead of paying the inflated, never-dropping prices of Best Buy, I can get it ahead of time for a discount by buying software from the people who spent their years of effort and money to develop it.

    The issue here isn't with Steam, it's with how the company handled the problem. Even if Steam wasn't involved, using a CDKey system, keys would have been deactivated. Everyone bashing Steam needs to realize this (the majority of bashers probably don't even use it - I actually really like it).

    To re-iterate what the real problem was: the *majority* of people (sure one or two may have legit complaints) affected tried to buy the game for a discounted price, had their games de-activated, can get a refund and buy it properly now. For the few people affected, I don't think this is that big of a deal - don't be so cheap on a company that's offering 5 very awesome games for the price of one, and one that even offered a discount beforehand.
  • by Anonymous Coward on Friday October 26, 2007 @12:15AM (#21124309)
    No, by his logic, he should (and by all rights is) entitled to find the lowest price and buy the game for that price. It's a little thing called capitalism. Sure, companies can choose to charge whatever they wish in whatever region they wish, but capitalism, and certainly globalized capitalism, also means that a consumer is able to "shop around" for a lower price as well. Just as producers look for lower priced commodities with which to create a marketable good.

    However, the producer, in this case Valve, has decided to make sure that consumers in region "A" cannot simply purchase goods from region "B" at a lower price, just as they too are entitled to do. Yes in such low-costed regions they don't make as much, but it's simply a matter that they cannot sell it at A's higher price because at that price it is too high for local consumers. After all, you cannot sell a game for US$50 to a region of people who don't make enough to ever consider that reasonable or even a luxury, but you can put safeguards in to make sure that a region of people who can afford that price readily can't pay US$10 or so because the goods came from that lower priced region.

    As a consumer, yes I am entitled to do the research and purchase lower priced goods, but in the same breath I'd say, yes, Valve is entitled to shut down any operation that would attempt to sell such lower priced goods to higher priced regions. So... yeah, capitalism is really the act of everyone screwing everyone else as best as possible, with one caveat, the more you have, the more you can actively screw others.
  • by MaineCoon ( 12585 ) on Friday October 26, 2007 @12:26AM (#21124421) Homepage

    Bullshit. Utter and complete bullshit. They may make less of a profit, but they're damn sure making a profit. You know why they're making less of a profit? Because, as you noted, the economy there can't sustain a 50 dollar per game rate.
    What about initial development costs? You, like the grandparent poster I originally responded to, seem to assume there is no cost of development, only a small cost of production per unit. My initial statement still. If they sold it for $10/unit everywhere, and stores take half of that sale, cost of production is $2-3, so they see $2-3 revenue per unit. If they have $15 to 20 million dollar initial development cost to recoup, they're going to have to sell a lot of units just to recover initial development costs, excluding other overhead (such as the TV ad, which probably cost a few million). A million units sold on a PC title is actually a very large number to sell on PC, even though it pales in comparison to what some console titles manage to sell.
  • by rabiddeity ( 941737 ) on Friday October 26, 2007 @12:30AM (#21124445) Homepage
    So what happens if I'm a U.K. citizen vacationing in Germany and I happen to buy Orange Box online while I'm there? What if I'm a U.S. service member stationed in Germany (yes, there are still U.S. bases there) and I buy Orange Box online with my U.S. credit card, from Germany?

    We have a word for products that "don't work" out of the box. It's BROKEN. Nonrefundable doesn't apply if you sell me a retail product that is broken. I wonder what EU and German common contract law have to say about this...
  • by kocsonya ( 141716 ) on Friday October 26, 2007 @12:30AM (#21124447)
    Well, I thought that was globalisation? I am Mr. Gamer and I want to buy product GAME that is $$$ here and $ there. Due to the regulation you praise, I must pay $$$ for the product. Fine. Now I am Mr. Company and I want to buy product PROGRAMMER that is $$$ here but only $ there. Should not the same regulation apply? I mean, Mr. Company off-shores their administration, the pressing of the DVD, the making of the booklet, the customer service center and chances are, part of the programming as well - because it's cheaper to buy it there.

    They want it both ways: they can buy stuff on the global market at the lowest achievable price. Then they come around and mandate that humans can not do that. Why? What makes a company more important than you or me? Companies scream around that regulation is bad, everything must be totally deregulated - except their customers, who must be heavily regulated to guarantee profit to the company and preferably executed if they do not comply.

    Once I read in old book, that a long, lo9ng time ago there was this crazy idea that we elect governments and give them certain powers in order to make *our* lives better. We also allow the government to give certain rights to non-living entities, such as corporations, *as long as* it helps the government's primary goal: to make our lives better. What a silly, pinko-commie sentiment! Fortunately, we know it better: it must be the other way around. Corporations are the ruling class and they give power to the government to control us so that our behaviour furthers the corporations' wellbeing. We call it democracy, which is some ancient word for the power over the people!
  • by fractoid ( 1076465 ) on Friday October 26, 2007 @01:38AM (#21125005) Homepage

    The only things sold as a "loss" are "loss leaders".
    Just a thought - here you're talking about the manufacturing cost, not the total cost of production. Development cost is amortized over a product's life cycle, hence a particular price point could constitute 'at a loss' or 'at a profit' depending on the volume of sales. This effect occurs with all products, but is especially noticeable with software because the per-unit manufacturing cost is trivial compared to the amortized per-unit development cost.
  • by jlarocco ( 851450 ) on Friday October 26, 2007 @02:18AM (#21125211) Homepage

    Close, but not quite. After the initial investment to create the game, producing the media and bandwidth to download/play is close to zero. As long as they sell any games at any amount over a couple bucks, they're making more money than they would be otherwise. It's the same reason airlines will often offer really cheap seats on flights with a lot of empty space. They may not make the full ticket price, but it's better than not making anything at all off those seats.

    Translating a game to a different languages costs significantly less than creating the game in the first place. A whole lot less than 1/5th the original cost. Once sales from the translated game recoups the small translation cost, they're not necessarily making a profit, but they're making money they wouldn't be otherwise.

    That doesn't make the huge price difference any less stupid, but I'm almost certain that's why they're doing it.

  • by Antity-H ( 535635 ) on Friday October 26, 2007 @03:25AM (#21125475) Homepage
    Let's make the following excercise:
    Valve wants to make a game, it costs $100 million to make.
    That means they have to sell 2 000 000 copies at $50 to break even. If they only sell at $50 then in countries with lower wages they won't sell any copies.
    According to their market studies, if the global market is 20 million players 75 percent of which have a low income ($400/month) they will likely only make marginal sales in the low income part of the market because for most of these potential players the price is just too high(let's say they stille make 10 000), and they will have to make the bulk of their sales in the high income part of the market which is only 5 million people. Their market study says they will only be able to sell 1.3 million copies in this market, because of piracy, second hand sales, other games etc. 1.3million * $50 is only $65 million and they loose money, so they don't make the game.

    Ok so $50 is too high, let's tap the low income market and price everywhere at $10 :
    they will sell 7 million in the low income market and maybe 3 million in the high income market that's 10 million sales for only $100 million dollars revenue. as much as valve love it's gamers it doesn't want to make a game to only break even it wants to make money

    Now their marketing officer checks out to see what happens if they have two pricing policies : say $10 for low income segment and $50 for high income segment. Suddenly the market study indicates they will be able to make a huge amount of sales in the low income segment say 7 million out of the 15 million people and they will sell 1.1 million copies in the high income segment (because the game is more widespread in countries that don't have as strong copyright laws there will be more piracy, they are still able to prevent high income gamers from buying at low income prices since they have this nifty activation system).

    7 000 000 * $10 is $70 million !
    1 100 000 * $50 is $55 million !

    Total sales : $125 million suddenly they make $25 million! instead of loosing money, they almost make twice as much money as they did with the first scheme and %25 more than the second scheme!

    Now which option would you choose ? Sure my numbers are completely made up so that the sum work out in the end, but don't doubt a second that it is exactly the kind of reasoning that went behind the creation of the regional lockout and the different pricing schemes.
  • by LingNoi ( 1066278 ) on Friday October 26, 2007 @04:09AM (#21125641)
    Expect your argument falls apart because I worked in Thailand for $633.2 a month. $300 on rent, $50 on transport, $50 for the visa, $100 on food (or something like that). In other words after the landlord and the Government got their dos there wasn't much left for me which meant I was living month-to-month.

    So it's not okay to ban my account when I go back home becauase:

    a) When I was there that's all I could afford
    b) I was living there not shipping it to another country.

    Over 25 Million foreigners live in Thailand, so please explain why I should have my account banned and have to re-buy the game, again, for what I could afford at my standard of living.
  • by Wite_Noiz ( 887188 ) on Friday October 26, 2007 @04:40AM (#21125839)
    A highly fallacious (and common) argument.
    Valve aren't only trying to cover the costs of the CD and box; these games have been in development for years at a staggering cost.

    I agree with other comments that Valve could correct this situation by allowing "offenders" to register a local license.
    I'm not sure how many other companies have tried charging local prices for products, like this, but it should be encouraged. The only way I can see other companies doing the same, is if they know that they can prevent the market from mass-importing the cheaper product.

    Caveat: I like in the UK, and we get stung a lot by the 1:1 import of goods from US$ to £.

    Personally, I bought it on Steam because it's so much easier, and I'm more than happy to fund Valve's work.
  • by NMerriam ( 15122 ) <NMerriam@artboy.org> on Friday October 26, 2007 @04:48AM (#21125875) Homepage

    It's being manufactured by a US company who have chosen to release a cheap version in Thailand


    And there's nothing new or novel about that. Gray market goods were being imported into the US long before "software" existed. It's never been considered immoral or "ripping off" the company to buy an American product in Hong Kong for a few hundred dollars less and bring it back to the USA.

    I'm just trying to figure out why gray market goods have always been considered acceptable, DVD region encoding has always been considered a ridiculous market price discrimination tool (indeed, many countries allow circumvention of it precisely because it is used solely for price discrimination), yet for some reason Valve is considered a victim in this situation and the people trying to import the cheaper product are suddenly considered "bad" by so many otherwise rational people.

    It is indeed tough shit for the customers, simply because Valve has the ability to enforce their preferences in a way that no other company does, and has the DMCA on their side to prevent their own customers from exercising their legal rights (much the same way it's perfectly legal to use clips of video, yet illegal to obtain them from a protected DVD).

    It's a perfect intersection of legal and technical abuse of customers, yet it seems nobody cares because it's Valve and we like their games.
  • by Dunbal ( 464142 ) on Friday October 26, 2007 @05:35AM (#21126129)
    So where is it written that software is exempt from this rule? Where does it say that I must only buy software in the country where I will use it, otherwise it will break?

          This is once again the old argument of the "strong" vs. the "weak". The strong will do what they can, while the weak will suffer what they must.

          The ONLY reason Valve is doing this is because they CAN. There's no law against it. They write the program and they can make your computer do what they want. Someone thought it was a good idea (to sell to the distributors). We have to put up with it.

          Of course because of the internet (which puts a lot of power back into OUR hands) word of this will get around and their sales will probably not be as high as they could have been. But still I bet they sold enough to make money, so they will do it again.
  • by JohnFluxx ( 413620 ) on Friday October 26, 2007 @06:55AM (#21126533)
    I think everyone understand why they did it. However many are annoyed at the double standards. They are allowed to just hire programmers from cheap countries, but we are not allowed to buy the software from cheap countries.
  • by Eivind ( 15695 ) <eivindorama@gmail.com> on Friday October 26, 2007 @07:37AM (#21126745) Homepage
    Legally this is pretty obvious: It's artificial barriers to trade.

    "region coding" of any sort is not legitimate in a free market economy. The entire *point* of a free market is to benefit society by improving efficiency, efficiency improves since buyers will choose the best supplier for their need, and suppliers will have to make competitive offers, or else not sell anything.

    Transporting something from a place where it's cheap, and to a place where it's worth more and sell it there is a fundamental function of trade. We'd all be a lot worse off if that wasn't possible.

    Frankly, I don't see why the US govt or the EU hasn't cracked down on this bullshit a long time ago (at the very least when the DVD-standard was launched with artificial barriers to trade baked-in)
  • by Gabriel227 ( 957840 ) on Friday October 26, 2007 @09:27AM (#21127617)
    There's something everyone should remember when following the 'vote-with-your-wallet' idea. Tell the company! And I don't mean post to /. something you hope they'll read or hear about, send an e-mail or a letter to Valve letting them know they lost a customer with their policies. When they hold meetings to determine how to sell more copies, I highly doubt this is the type of thing that comes up.
  • Re:Silly users (Score:3, Insightful)

    by Midnight Thunder ( 17205 ) on Friday October 26, 2007 @09:35AM (#21127717) Homepage Journal
    Buying what you want, where you want, when you want at the lowest price you can find is for corporations. Why do users keep thinking globalization should benefit them. It's really silly.
    <sarcasm>
    Silly you. People don't travel, only pirates and cheap-asses do.
    </sarcasm>

    Seriously, I am no longer going to buy HL2 (I have a legal version of HL1), because I am currently working in France for the moment and fear that if I buy a copy they will lock me out as soon as I get back to the states. Steam is a fine idea, but this is turning into abuse.
  • by Midnight Thunder ( 17205 ) on Friday October 26, 2007 @09:40AM (#21127771) Homepage Journal
    I understand what you're saying, but why is it fair for companies to get cheap labor from other countries when it isn't fair for us to get cheap video games from other countries?

    Because companies have pushed to be able to have this privilege, while end-buyers (aka consumers) have not banded together to get law changed in their favour.
  • by evilandi ( 2800 ) <andrew@aoakley.com> on Friday October 26, 2007 @09:57AM (#21127941) Homepage
    Er... I'm a UK Steam user, and I can assure you that the prices on Steam are in US Dollars- US$49.99 for The Orange Box, IIRC.

    That equates to around 25 quid. The retail box, in high street shops, has a "recommended retail price" (RRP) of £35 (US$70), but almost all shops, and even Amazon UK, have got it discounted to £24.99 . Given that I'll get a shiny box to put on my O'Reilly Wall, plus hopefully some manuals, I'll get the real box as opposed to the virtual one (I don't imagine I'll ever actually use the DVD, mind).

    Don't get me wrong, us Brits get shafted on pricing on a lot of stuff, and I enjoy sticking it to The Man as much as the next armchair anarchist, but in this particular instance, Valve and Steam have helped promote price equality by pushing digital distribution.

    Having said all that, I'm getting The Orange Box for my birthday next week, and I'm going to be mightily annoyed if it locks up when I take my laptop to my sister's house in Holland or any business hotel in America.
  • by mcvos ( 645701 ) on Friday October 26, 2007 @10:06AM (#21128023)
    It's obvious that they make more money this way, but the question here is: do you really want a free market or not? Suppose I bake bread. One customer is rich, and can easily afford to pay $5 for my bread, another is poor and can pay only $0.5. Should I sell each for what they can afford or should I set one price for everybody?

    Are free market and globalisation only for the big players, or should they be for everyone? Suppose a company is looking for labour, and they can buy it here for $50 an hour or overseas for $10 an hour. They think they can save some money by importing labour from abroad (or having their work done there), but when they import the goods, the government suddenly says: "since you didn't buy your labour in the local market, you can't sell those goods here." That's basically what's happening here. It's a kind of protectionism.
  • by sgtrock ( 191182 ) on Friday October 26, 2007 @11:13AM (#21128923)
    Yep. Instead, VMWare gets bad press that's read by about 1.5 million geeks instead. Good thinking, there.

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