@ Josh: The problem is fundamental with Capitalism. In order for it to work, you must control your Supply. With software, the supply is infinite (You can’t really clone cars… or televisions), so you have to either go REALLY REALLY big with demand (Make the game an insane MUST-HAVE game of 2013!!! YOU CAN’T LIVE WITHOUT IT!!! Ahem… sorry, got carried away) or you control your supply somehow. And that’s the reason game companies and music companies are futzing around with DRM, because not every game is the one you can’t live without.
When it comes to the value of the game (And the reason you aren’t understanding the numbers on that graph) you have to look at it from the point of view of work hours put in by your workers. If these two developers were in my company, I’d be expected to give them a living wage, let’s say $60,000 (That’s a lousy wage for competent programmers, by the way), so my overhead for this game is now (2 programmers, 2 years) $240,000, right? So in order to break even, I need to sell 30,000 units of this game. Games will show a return of (roughly) 50% of release day sales over the first month after release and 50% of THAT over the next year (This is a guestamate, not hard and fast numbers). So, you had 214 units sold on release day, you can assume another 107 more units by the end of the month, and another 53 units by the end of the year. That’s a total of 374 units, $2,992 dollars. Now, Marketing changes this number greatly, but we’ll use the “Mediocre marketing” model for effect (Mostly because marketing won’t show more than 200% return over a year unless something astonishing happens). So, it cost me $240,000 to make the game, and I made $2,992 dollars. Just slightly over a 1% return. Or, look at it another way: a 99% loss.
So, the way to solve this is to control my Supply: I restrict it so you can’t get it except through me (DRM or something like that, I don’t believe DRM works, but let’s just play along), and hype it so you MUST have it. Will I capture all of those 3100 people who pirated it? Absolutely not. But the price point is tasty ($8), and with that I WILL capture half of them. And adding an extra 1500 units to my 214 changes the numbers dramatically. Now I have 1,714 units sold on opening day, add 50% for the month (857) and another 50% for the year (428) and now you have 3,000 units, or $24,000. NOW we are at 10%. You still need to market blitz to 10 times that to make overhead, but that’s possible. It’s a whole lot better than having to boost to 100 times. This is a small company release, I don’t expect a marketing blitz out of them yet.
The thing about this is, it’s business. And that’s hard to follow if you don’t DO business. It’s easy to think these guys are whining until you realize that their work is right now valued at a DIME an hour and that’s because they have infinite supply of their product and they can’t control their supply. Marketing works the demand side, but they have to do something to control their supply in order for it to be effective. Would YOU work for $0.10 an hour?
That’s why this is ingenious; they didn’t violate their personal beliefs (No DRM), but they still managed to get their point across (And capture some great numbers for me to work with).