Aeshi said:
So how are they supposed to beat "Free" then? because I'm pretty sure that, by very definition, is better value than anything the legit copy can offer.
Others have presented several examples. Some of what I say will overlap with theirs.
1) Better service. Providing people who can be asked how to fix a problem improves the value of your product.
2) Patching/after-market content. DLC is a way to do this. And I'm fully aware that a pirate will probably figure out how to add in whatever DLC you release, but it's far more convenient if the game downloads/installs the new content automatically. Which brings us to...
3) Convenience. This has been covered already by others, but basically - people value their time. If your legit version works the first time after a 2-button install, it's a better product than a pirated version that requires an hour or two of tinkering.
4) Online community. Contained within this are things like the Steam overlay (allowing you to talk to friends while playing), Achievements, and multiplayer of all the various forms. There's nothing wrong with actively policing official multiplayer servers for pirates, either - It's not nearly as obtrusive as Ubi's (and now Blizz's) "must be online to play" stuff, since you're obviously online anyways if you're playing multiplayer.
5) Extras. Manuals, done right, can be truly amazing references/guides/immersion tools. Same with maps. And that statue that Bethesda packaged with Skyrim's CE was an awesome thing which no pirate can copy (well, without spending a huge amount of time and resources on a 3d printed replica).
6) Cloud storage. Let me store my save game online, access it from whatever computer I want. Don't make this a mandatory feature, though - i.e. still let people play the game with locally stored data. Steam Cloud does a good job of this.
7) (This one's more hazy/metaphysical) A legitimate copy
does provide the ability to support a game company. Pirated copies, obviously, don't. So a legit copy can provide that hazy feel-good feeling (and a marginally higher likelihood of similar games being created), while I'm fairly certain pirates generally know that what they're doing is wrong.
And yes, I'm aware that Steam is also a DRM provider. The trick (which I wish more companies would catch onto) is that it's DRM that also
provides benefits to the consumer. Community access, cloud storage, support forums, one-click (ok, 4-click) install: These are all features provided by Steam that can help drive pirates to a legitimate version.
Hell, in my case they've driven me to scrap an older legitimate version of a game (see: Sins of a Solar Empire) simply to gain access to these benefits. And stop supporting Gamestop, but that's another story.
tl;dr
Convenience, support, extras and the ability to support someone whose work you believe in.
Obviously, some of these benefits already weigh in favor of the legitimate copy. But some, currently, weigh against it. And I'm not going to go into DRM, which again weighs against the legitimate copy.
And as you pointed out, there is a pricing differential. So I guess the point I'm trying to make is - Let's try to make that the
only advantage the pirated copy has over the legitimate one.