App Store Piracy Tops $450 Million via ign

January 15, 2010 - According to a report on Wall Street 24/7, piracy has cost the App Store over $450 million since its inception in the summer of 2008. That is a crippling number considering the vast number of apps and games on the App Store that are not created by mega-teams, but small operations and hobbyists encouraged by the ease of development and low cost barrier. But even with iPhone games costing far less than traditional console and handheld games – the average is around $3 – the temptation to pirate games on jailbroken handsets is just too strong for many.

The report places the average piracy rate at 75-percent, which is how Wall Street 24/7 came up with the $450 million figure after factoring in the number of total paid apps and the rate of download. The actual figure could be less – but it could also be far worse. Consider the reports of piracy from a handful of developers in the article:

Developers Neptune Interactive Inc and Smells Like Donkey Inc have reported piracy rates has high as 90% for their game $1.99 Tap-Fu, and claim that it was available in a pirated version within 40 minutes of its release on the App Store. Web Scout Inc. reports a 75% piracy rate for its $0.99 iCombat game. The developer of the $4.99 art program, Layers, reports a piracy rate of 75%, and Fish Labs reports 95% for its $7 Rally Master Pro 3D.


A pirated 99-cent game? Is that what we've come to?

And how do developers determine the piracy rate of their games? Some have placed a small hidden feature in their games that reports when it is played on a jailbroken device. With the rate of jailbroken iPhones on the rise thanks to much easier steps than originally required when the device debuted in 2007, the scourge of piracy only stands to grow. Which, in turn, threatens the incredible outpouring of creativity that makes the App Store such a vital outlet for games.