You Can't Compete With Free Meets Its Ultimate Counterexample In The NES Classic

from the the-end dept

Of all the frustration-causing mantras of stupidity we here at Techdirt have combated over the years, none is quite as annoyingly wrong as: "You can't compete with free!" There are many reasons why it's so frustrating, but basic economics essentially shows that this is a loser's argument for an inability to compete. Given that there are many examples of competing with free, and the fact that the response to these counterfactuals is generally, "nuh uh, you doody head!" it's time that the myth of not being able to compete with free be put to rest. For years, we've highlighted folks pretty easily competing with free versions of their products, typically by either connecting with their fans in a way that causes them to want to buy the authentic version, or else competing by offering something free versions can't, be it convenience, authenticity, or included options for purchase. But what we've always needed to finally put this stupid mantra to rest is a completely pure counterexample showing that it is flatly, plainly, painfully not true.

Allow me to paint you a picture of the world as it exists today. You will recognize this world, because it is reality. It's a world in which for thirty years, video gaming has become a staple of our entertainment culture. Those of us that have reached middle age will tell you that gaming has essentially always been a part of our lives. We love it, and we particularly love going back to the olden days of gaming and re-enjoying the games we played in our youth. It's also a world in which emulators of early game systems are widely available, as are ROMs for the games we played long ago. We can get them literally any time we want, on everything from our personal computers, to our mobile devices, or on cheap computer systems that come fully stocked with these emulators and games. This is all insanely cheap or, more commonly, completely free.

And it's also a world in which Nintendo's NES Classic retro console was the best selling console for the month.

That’s the word from retail analyst NPD Group, which reports that “the NES Classic was June 2018's highest unit-selling hardware platform, while the PlayStation 4 led the market in dollar sales” for the period between June 3 and July 7.

The NES Classic, which costs $60 and emulates 30 games from Nintendo’s first home console, launched in November 2016 to mass shortages as Nintendo underestimated demand. Although the publisher announced that it was discontinuing the device, it later committed to bringing the NES Classic back to stores in 2018. Starting on June 29, the system returned. And then it beat up all the other consoles.

We talked about that shortage ourselves as an indication that the kind of convenience and retro-feel Nintendo could offer with its console competed well with the various free versions online. But even this writer read in shock that this NES Classic was outselling the current iteration of gaming consoles.

Let's put this plainly: if the "You can't compete with free!" mantra had even a shred of validity, then we could not live in this reality. It would be impossible. The NES Classic offering from Nintendo is actually in some ways inferior to the free options, given the smaller number of games it offers and its lack of portability and modability. But it offers something the free versions don't. It offers nostalgia in having a console. It offers having that NES Classic sitting in your entertainment center, serving as a conversation piece along with being a gaming console. It lets fans of Nintendo reward the company for serving them well. It offers legitimacy.

It competes with free and is apparently doing so in record numbers. Whenever someone shouts "You can't compete with free!" at you, it should henceforth be a simple matter of replying "But the NES Classic," and walking away. Because this is as good of an example of how dumb that mantra has always been as we could have hoped for.

Filed Under: compete, compete with free, copyright, free, nes, nes classic
Companies: nintendo

Yet Another Study Shows You Can Compete With Piracy

from the more-convenience,-availiability,-and-better-pricing dept

We've been saying it for years, and plenty of past studies have supported the assertion as well, but yet another report -- this time based on a survey in Denmark -- shows that those who regularly download unauthorized works online would actually prefer to use legal services, but are frustrated by the lack of convenience, choice and availability. The survey results did not directly have them complain about price, but when asked what would reduce infringement, price was a major variable. In other words: offer a reasonable service that is convenient, useful, not limited and which is reasonably priced, and you'll convince a lot of people that it's more worthwhile than infringement. We've certainly seen this in some areas already, but truly convenient and reasonably priced services are still hard to find for the most part. It would be great to see more competition and more innovation in that space -- and reports like this suggest it would actually be good for everyone -- including the copyright holders. Oh, and for the record, this report (also like tons before) show that those who infringe also tend to buy plenty of content as well.

Filed Under: authorized services, compete, convenience, payment, piracy

Wil Wheaton Says Chris Dodd Is Lying About Lost Jobs; Says MPAA Accounting Creates More Losses Than Piracy

from the indeed dept

We've discussed a few times in the past about how actor Wil Wheaton seems to understand that piracy isn't an enforcement issue, but a business model/service issue. He's also been somewhat vocal (since before many others caught on) concerning his opinion that SOPA/PIPA are a bad idea. And now he's responded to our story about Chris Dodd threatening politicians that the MPAA has financially backed if they don't pass PIPA/SOPA, by not only calling Dodd completely tone-deaf, but also noting that Dodd is lying about lost jobs:

I have lost more money to creative accounting, and American workers have lost more jobs to runaway production, than anything associated with what the MPAA calls piracy. Chris Dodd is lying about piracy costing us jobs. Hollywood’s refusal to adapt to changing times is what’s costing the studios money. That’s it.

Indeed, we've explained how highly questionable Hollywood accounting is used to keep actors from getting paid, even on some of the most successful movies ever. And, Wheaton is absolutely right. As we've been saying for the better part of a decade, the best way to deal with "piracy" is to properly compete with it. But Dodd and the MPAA still just don't get that. Actually innovating and competing in the market just isn't how things are done in Washington DC, I guess.

Filed Under: chris dodd, compete, entertainment industry, hollywood accounting, piracy, wil wheaton
Companies: mpaa

Wil Wheaton Explains Why Hollywood Needs To Compete With 'Piracy'

from the nicely-done dept

An anonymous user pointed us to this nice quick video of actor/geek Wil Wheaton discussing how the entertainment industry needs to catch up with the 21st century when it comes to dealing with "piracy." It starts out with Wil saying: "As soon as the entertainment industry provides an alternative to Bittorrent or an alternative to piracy, that makes it just as easy for honest people to get access to the programming, then the piracy dries up." Of course, plenty of us have said this for years, but it's nice to see another actor speaking up about this, even if it's one as "in touch" with the tech world as Wheaton. Wheaton goes on to quote Gabe Newell, to explain how the industry is too often focused on pirates who will never pay, and to talk about the ridiculousness of him not being able to watch videos he had legally purchased while travelling in Canada because he was outside the proper territory. The whole (short) video is completely worth watching. He notes that it's difficult to pull the entertainment industry into the modern era and suggests that they're just about reaching 1997 right now.

Filed Under: compete, entertainment industry, piracy, wil wheaton