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Piracy is not a problem for Steam says Newell

The issue is service not cost

Valve boss Gabe Newell has asserted resoundly that piracy is not an issue for their dominant digital platform, Steam.

Newell maintains that the main reason for piracy is not the cost of games but that the pirated titles don't offer a valuable enough service.

He explained: "For example, if a pirate offers a product anywhere in the world, 24/7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the US release, and can only be purchased at a brick and mortar store, then the pirate's service is more valuable."

"Our goal is to create greater service value than pirates," Newell continued, "and this has been successful enough for us that piracy is basically a non-issue for our company. For example, prior to entering the Russian market, we were told that Russia was a waste of time because everyone would pirate our products. Russia is now about to become our largest market in Europe."

Thanks GamesIndustry.biz.