Video Game Piracy Black Market Value: $3.5 Billion





Data on the black market in Video Game Piracy


Hand held video game piracy losses over 5 years

The Computer Entertainment Suppliers Association reported losses of nearly $42 Billion from the pirating of Sony PSP and Nintendo DS games between 2004 and 2009.

Source:  Don Reisinger, “Study: $42 billion worth of PSP, DS games pirated,” CNET, June 7, 2010.

Piracy in Spain

In the second half of 2009, piracy in Spain cost $6.28 Billion (5.1 Billion Euros) to content producers. Legal sales in the country during the same period were $1.97 Billion (1.6 Billion Euros).

Movie piracy accounted for $2.95 Billion and music piracy for $2.83 Billion.

Of the digital music market, 95 percent is illegally downloaded.

Of the movie market, 83 percent of all movies are illegally downloaded.

53 percent of all video games are illegally downloaded.

And 19 percent of all digital books are pirated.

Source: Pamela Rolfe, “Piracy cost Spain $6 bil in 2nd half of ’09,” Hollywood Reporter, June 1, 2010.

Vidoe Game Piracy affecting Nintendo

Japanese video game maker Nintendo discovered in June 2009 10 websites where their games were illegally downloaded 238 million times.

The total losses to Nintendo was $10.7 Billion.

Source: Saki Mizoroki and Takashi Kamiguri, “Console game makers fight ‘magicom’ piracy craze,” Asahi, April 20, 2010.

Chinese knockoffs helps achieve market share in online games

Chinese knockoffs are believed to be responsible for gains of up to one-third in market share in the online game industry.

Source: “Chinese Knockoffs Pose Headaches for Korean Online Game Makers ,” Chosun Ilbo, October 17, 2009.

50 to 75 percent of all internet traffic is illegal downloading

The AFP states that illegal downloading represents 50 to 75 percent of all Internet traffic worldwide.

Source:  AFP, ” Swedish crackdown on piracy pays off,” Google News, August 4, 2009.

94 percent of video games in Brazil are pirated

The Brazilian Association for the Development of Video Games finds that up to 94 percent of all video games sold in Brazil are pirated.

Source:  Pedro Franco, “A Nation of Pirates,” Escapist, May 12, 2009.

58 billion lost to US economy due to copyright piracy

At the World Copyright Summit in Washington, D.C., US Senator Orrin Hatch (R-Utah) stated that piracy of movies, music, software and video games costs the US economy $58 billion a yer.

Source:  AFP, “Calls for united action at World Copyright Summit,” Google News, June 9, 2009.

Video Games Piracy Losses by Country

The following are the estimated losses to video game piracy by countries. The numbers are the most current data regarding video game piracy released by the International Intellectual Property Alliance.

Country Market Value
1 Italy 817 Million
2 China 589.9 Million
3 Spain 510 Million
4 South Korea 461.9 Million
5 Russia 282.1 Million
6 Mexico 273 Million
7 Taiwan 202.9 Million
8 Brazil 159.3 Million
9 Sweden 135.3 Million
10 India 129.9 Million
11 Thailand 91.4 Million
12 Poland 76 Million
13 Australia 75 Million
14 Greece 30.2 Million
15 Malaysia 28 Million
16 Bulgaria 21 Million
17 Hungary 15.9 Million
18 Egypt 14.3 Million
19 Israel 11.4 Million
19 Philippines 11.3 Million

Video Game Piracy Market Value: $3.5 Billion

Video Game Piracy is the unauthorized copying, selling, and distributing of licensed video games without the permission of the copyright holder.

Click here to see a breakdown of pirated video game losses by country.

The Electronic Software Association estimates piracy losses to entertainment software companies to be about $3.5 billion.

Source: Kristin Kalning, “Game piracy runs rampant on the Internet,” MSNBC, May 14, 2007.

Nintendo lost $762 million to piracy in 2006

An official with Nintendo was quoted stating that Nintendo and its game developers and publishers may have lost $762 million to video game piracy in 2006.

Source: Associated Press, ” Raids in 16 States Seek to Thwart Video Game Piracy,” New York Times, August 2, 2007.

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