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George Lucas and the economics of video games

By Scott McCollum
SPECIAL TO WORLD TRIBUNE.COM
April 9, 2002

ÒGeorge Lucas has plenty of money,Ó the engineer at a large technology company and a $40,000 a year salary told me. ÒHe wonÕt miss this one free copy of his video game.Ó So goes the rallying cry of Gen-X! The vast, disenfranchised, whiny, blame everyone except myself generation that came into their own during the 1990s has truly found their voice with: ÒI want what I want, I want it when I want it and I want it from so-and-so. So-and-so already has plenty of money and not paying the outrageous price for so-and-soÕs product is my self-righteous protest.Ó

That was exactly what I heard from a well-paid member of Gen-X in Austin regarding my plans to purchase the new Star Wars video game from LucasArts in late March 2002. Apparently I am the only guy in the high-tech industry that is stupid enough to actually pay money for a video game. Using a Òfile sharingÓ website, a common web browser and a broadband connection, my engineer friend had downloaded the entire video game a full three days before it was released to retail stores. No waiting until Friday to pay the $49.99 for Jedi Knight 2: Jedi Outcast because this engineer (and all the other engineers in his office) had downloaded for free on the Internet on Tuesday.

I really wonder how this could have happened. No, not Òhow could this have happenedÓ in a psychological sense... I mean, how could this game have been uploaded to Òfile sharingÓ digital theft sites on the Internet at least three days before it was available in stores? Most assuredly it was an inside job at LucasArts. LucasArts, the San Rafael, California-based video game developing arm of the highly-profitable multimedia company built by Star Wars auteur George Lucas, employs 300 full-time/part-time game programmers, designers and testers. However, Jedi Knight 2 was developed outside LucasArts at a company called Raven Software. LucasArts pays for the production, markets and distributes the game but left most of the day-to-day work to Raven. Raven, in turn, is not solely the developer of the gameÕs technology. The underlying tech (or ÒengineÓ) of Jedi Knight 2 was licensed from the popular Quake 3: Team Arena video game created by Dallas, Texas-based developer Id Software.

It is not inconceivable that one of the part-time web designers decided to keep a souvenir of his tenure at LucasArts by the end of his temporary contract working on the official Jedi Knight 2 webpage. Unfortunately, it is also not inconceivable that after working almost a year on this game, one of the full-time graphic artists at Raven might have adopted the attitude of ÒI already made my money on this so why not give it away?Ó ThereÕs another very likely possibility of a full-time programmer at either company deciding to post a copy of Jedi Knight 2 on the Internet after reasoning that neither Raven nor LucasArts deserves to have any money from this game since Id Software did all of the real work when they created the game engine.

For the benefit of anyone living on the Planet Mongo for the past ten years, the fact is that video games are big business. PC video games like Jedi Knight 2 along with game consoles like SonyÕs PlayStation2, NintendoÕs GameCube and MicrosoftÕs Xbox generate billions of dollars international every year. In 2001, video games were a $9 billion industry that employed millions world wide. With that success comes the whining of the hardcore gamer: ÒTheyÕve got $9 billion, I want the newest game and I donÕt want to pay $49.99 for it.Ó YouÕd expect this kind of childish attitude from nine year olds, but the problem is that most hardcore gamers are Gen-Xers in their 20s or older with college educations and paying jobs. Remember the engineer that was stealing Jedi Knight 2 off the Internet? His manager is notorious amongst his co-workers for stealing music, software and movies using the companyÕs broadband Internet connection because he has the infamous Òwhy pay for it when I can download it for free?Ó attitude. A so-called family man in his early 30s with a $60,000 a year salary is stealing music and software because he says $50 is too much for a ÒPC DJÓ music mixer program he wants for his DJ party side business? Boy he is really setting a great example for others to follow. What must he tell his daughter when she asks him for a new toy that costs more than her allowance? ÒMr. Mattel has plenty of money, darling. Plus, itÕs easier to steal that Barbie.Ó

What the Gen-X crowd needs to understand is that stealing these games using relatively inexpensive broadband Internet connections and Òfile sharingÓ theft sites will never lower the prices. Media companies and Democrat Senator Fritz Hollings are attempting to force manufacturers into placing ÒV-chipÓ-style anti-piracy devices on all new MP3 players and CD-RW drives via legislation. Of course, forcing Intel and Sony to research, develop, manufacture and implement government mandated anti-piracy devices isnÕt going to lower software costs either. ItÕs tough to take either side on this debate because both are so distasteful. I certainly wouldnÕt side with the idiotic well-paid Gen-X thieves with blatant disregard for copyrights. Yet thereÕs nothing that makes me want government mandated security polices imposed on the companies that drive our free market economy.

Bottom line is there are many amoral middle-class people in America with the ÒGeorge Lucas has plenty of moneyÓ or Òeat the richÓ attitude. Until childrenÕs shows start teaching kids that ÒsharingÓ a cookie with your friend is good but ÒsharingÓ copyrighted material over the Internet to millions of people is actually called Òstealing,Ó I doubt anyoneÕs little girl is going to tell their daddy: ÒI donÕt want to steal Barbie, we should do the right thing and pay for her.Ó

Want to share your idea for a pro-intellectual property rights kidsÕ show or would you rather defend digital thieves? Email me with your comments. <>

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