If those companies would disappear overnight, it would be a positive outcome for humanity. I guess there are upsides to Unity's insanity after all.
I think it also affects legitimate gamedev studios. But yeah, I couldn't care less for the signees on this letter. Good riddance, boys; if your product can only run on ads because people won't pay for it, you know you have a shitty product. We need higher quality games in the market, not higher quantity of your chaff.
https://www.eurogamer.net/football-manager-dev-hopes-to-stic...
https://www.theguardian.com/technology/appsblog/2012/jul/23/...
https://venturebeat.com/games/monument-valley-developer-only...
https://www.pocketgamer.biz/news/34191/gdc-online-11-android...
https://www.androidpolice.com/2010/08/26/android-piracy-by-c...
https://www.computerworld.com/article/2515893/android-softwa...
If anyone ever wonders why premium games on mobile died out, there's your answer.
But to give a TL;DR for those who don't click through: Piracy on Android in the 2010's was especially rampant, due to the nature of how you APKs are packaged and distributed (and how hard Google makes to add DRM). 70% piracy rates were common on Android compared to 30% on IOS, and it wasn't unusual to hear of 90+% in some games, to the point where a few games went f2p simply because they could not get users to pay a single dollar for their game.
in a particular instance, the hit game Monument Valley, a 2014 game that had 26m downloads on IOS alone in 2016, was reporting 95% piracy rates on Android. It is (or was, back in 2018) $3 on IOS, and now f2p on Android for that reason.
if you want a frame of reference for how absurd this is (not that you should to understand how 19/20 of your "customers" aren't buying your game): PC piracy has stayed around 33-40% throughout the decades. I cannnot blame developers for switching or abandoning the platform given those piracy rates. It would legitimately be better to offer a demo on Android (a properly isolated demo, not "part of the full game" demo) and point them to console/PC than it would to spend resources porting to Android.\
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Gabe Newell is oft-quoted saying "Piracy is a service problem". Well, this shows that services can simply get around this by turning the pirated content into a thin client and store all the value on the server. It simply took until "always online" was no longer a lofty assumption to perform.