"We think there is a fundamental misconception about piracy. Piracy is almost always a service problem and not a pricing problem," he said. "If a pirate offers a product anywhere in the world, 24 x 7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the US release, and can only be purchased at a brick and mortar store, then the pirate's service is more valuable."The proof is in the proverbial pudding. "Prior to entering the Russian market, we were told that Russia was a waste of time because everyone would pirate our products. Russia is now about to become [Steam's] largest market in Europe," Newell said.
The purpose of Steam is to provide as much value not only to the customer but also to other game publishers. "Our success comes from making sure that both customers and partners (e.g. Activision, Take 2, Ubisoft...) feel like they get a lot of value from those services, and that they can trust us not to take advantage of the relationship that we have with them."
