Institutionen för studier av samhällsutveckling och kultur – ISAK LiU Norrköping Hyperdistribution and the future of copyright economics - A study of the contemporary Nordic Gaming industry Jimmy Rosén Masteruppsats från Mastersprogram i Kultur och mediagestaltning Linköpings universitet, LiU Norrköping, 601 74 NORRKÖPING ISAK-Instutionen för studier av samhällsutveckling och kultur LIU-ISAK/KSM-A- -09/02- -SE Handledare: Kosta Economou Nyckelord: Fairclough, Diskursanalys, Upplevelse, Ekonomi, Organisationsstudie, Norden, Spelindustrin, Hyperdistribution, Fildelning, Piratkopiering. Abstract Rosén, J. 2009. Hyperdistribution and the future of copyright economics A study of the contemporary Nordic Gaming industry. Master thesis. This interdisciplinary study shows that because of the changing demands from consumer caused by the growing influence of the internet and file-sharing the Nordic Gaming industry is going through an economic evolution. This result was derived by using qualitative questionnaires directed towards Gaming industry decision makers in the Nordic region combined with critical discourse analysis based on the methodology of Norman Fairclough, using theories of different characters to understand the field. In this thesis the case of the Nordic Gaming industry is used to assert that because of changing demands of consumers and an ever growing piracy movement, societies are evolving into transitional economies where it is increasingly harder to sell products consisting of pure information. Contents List of illustrations .................................................................................................................................... I Figures .................................................................................................................................................. I Abbreviations .......................................................................................................................................... II 1.0 Introduction ....................................................................................................................................... 1 1.1 Research context ........................................................................................................................... 2 1.2 Explaining the media landscape .................................................................................................... 3 1.2.1 Copyright industries ............................................................................................................... 3 1.2.2 Copyright ................................................................................................................................ 3 1.2.3 Market .................................................................................................................................... 4 1.2.4 Gaming industry ..................................................................................................................... 4 1.2.5 Piracy ...................................................................................................................................... 4 1.2.6 Media landscape .................................................................................................................... 4 1.2.7 Game Service & Game Technology ........................................................................................ 4 1.3 Preview of the thesis ..................................................................................................................... 5 2.0 Theories of the emerging media landscape ...................................................................................... 7 2.1 The Internet, the Commons & Piracy .......................................................................................... 13 2.2 The technological sublime and the experience economy ........................................................... 19 3.0 Method & scope .............................................................................................................................. 23 3.1 The Gaming Industry field ........................................................................................................... 23 3.2 A brief description of the respondents. ...................................................................................... 26 3.2.1 Avalanche Studios (Sweden) ................................................................................................ 26 3.2.2 Coldwood Interactive (Sweden) ........................................................................................... 26 3.2.3 EA DICE (Sweden) ................................................................................................................. 26 3.2.4 Jadestone (Sweden) ............................................................................................................. 27 3.2.5 Lockpick Entertainment (Sweden)........................................................................................ 27 3.2.6 Massive Entertainment (Sweden) ........................................................................................ 27 3.2.7 Muskedunder Interactive (Sweden) ..................................................................................... 27 3.2.8 Redikod (Sweden) ................................................................................................................. 28 3.2.9 Resolution Interactive (Sweden) .......................................................................................... 28 3.2.10 Paradox Interactive (Sweden) ............................................................................................ 28 3.2.11 Sim Bin (Sweden) ................................................................................................................ 28 3.2.12 Upside Studios (Sweden) .................................................................................................... 29 3.2.13 Power Challenge (Sweden) ................................................................................................. 29 3.2.14 Funcom (Norway) ............................................................................................................... 29 3.2.15 Watagame (Denmark) ........................................................................................................ 29 3.2.16 IO Interactive (Denmark) .................................................................................................... 30 3.2.17 Deadline games (Denmark) ................................................................................................ 30 3.2.18 CCP Games (Iceland) ........................................................................................................... 30 3.2.19 Remedy Entertainment (Finland) ....................................................................................... 30 3.2.20 RedLynx Ltd (Finland) ......................................................................................................... 31 3.2.21 Frozenbyte (Finland) ........................................................................................................... 31 3.2.22 10tons (Finland) .................................................................................................................. 31 3.2.23 Recoil Games (Finland) ....................................................................................................... 32 3.2.24 Bugbear Entertainment (Finland) ....................................................................................... 32 3.2.25 HouseMarque (Finland) ...................................................................................................... 32 3.3 Discourse and discourse analysis ................................................................................................ 33 3.4 Scope & reliability ........................................................................................................................ 36 4.0 Analyzing the Gaming industry........................................................................................................ 44 4.1 Project Funding and platform choices ......................................................................................... 46 4.2 Anti-Piracy methods .................................................................................................................... 53 4.3 The future of distribution ............................................................................................................ 59 4.4 The business models vs piracy .................................................................................................... 67 5.0 One step further .............................................................................................................................. 74 5.1 Piracy as part of the business model ........................................................................................... 74 5.2 The future of copyright economics ............................................................................................. 81 References ............................................................................................................................................. 85 Chapter 1 ........................................................................................................................................... 85 Books ............................................................................................................................................