The Game Within the On-Line Game

Online gaming is a relatively new industry, and one with phenomenal growth over the last 15 years. The release of Call of Duty: Modern Warfare 2 late last year generated a stunning $550M in sales revenue in the first week alone, and overall the series has generated over $3B in sales for Activision, the publisher:

http://www.csmonitor.com/Innovation/Horizons/2009/1127/call-of-duty-series-sales-top-3-billion-activision-says

There is a fly in the ointment, however. As has been true forever, the larger the business, the larger the attraction for the criminal element. What's unique here is the nature of the crime, given that the essential product is that most intangible of assets, software.

There are two fundamental modes of online game play today: standalone mode, and multi-player mode. The latter can be more refined into two general categories, small group play and massively multi-player gaming.

Standalone commercial gaming software has suffered since it's inception from the problem of illicit copies in which the license protection has been "hacked". Simply put, someone has taken a version, analyzed the code internals, and modified the binary level code to disable or otherwise spoof the license checking code. The result: a "free" copy of the software, or at least a copy that won't generate any revenue for the publisher. And software being casually clone-able means this free copy can be and is distributable to as many people willing to pay for it (if required) and use it (illegally, of course).

The result of this common crime is a general axiom in the gaming industry for standalone games, namely that all the sales of significance happen in the first two weeks after release. After that, "cracked" copies are available on the cheap, and the revenue stream ramps down far more rapidly than normal sales dynamics and economics would indicate. As an example, a simple web search for "Call of Duty Modern Warfare 2 download" will quickly find cracked versions of this product available for little to no direct cost.

Massively multi-player on-line role playing gaming (MMORPG) vendors had a solution to this problem...or so they thought. The very nature of MMORPG games required participation in a single unified "world" (virtual reality), implemented as a single world by a server (or server farm) operated by the game publisher. The client software operating on the gamer's computer communicates with the servers to participate in the single world with all the other gamers participating at the moment. The business model is based on ongoing subscription revenue for the privilege of continued participation in the virtual world enabled by the publisher's servers, rather than the licensed sale of a single copy of the game.

Not to be stopped, the criminal element went to work on this model as well. Careful analysis of the code within and the networking traffic to and from the client software on the gamer's personal computer enables these server applications to be "reverse engineered", meaning new software is developed from scratch the performs the same functions as the original publisher's gaming server software. Obviously this isn't cheap nor simple, but given the literally millions of players involved in these types of games, and the ability to operate "parallel worlds" with lower subscription costs, the economic returns of the criminal effort become quite attractive.

For those of us who believe that we have rights to our owned intellectual property and deserve to be compensated for it's usage, there is hope. The technologies to fight back are available today. I'm not referring to simple copy protection schemes that are relatively trivial for competent code hackers to analyze and disable. I am referring to technologies that approach military grade anti-tamper facilities, used to protect US military software assets ("critical program information").

Given the stakes in the gaming industry today, the industry would be remiss to not take advantage of such technologies. The days of accepting only two weeks of revenue for a game that takes years and many millions of dollars to develop, and the days of organized crime stealing massively from the game publishers, can and should be over. To not take advantage of these technologies would be a business management crime of a different sort.

Needless to say, Arxan Technologies is here to help turn the tables on the criminals. We vend these technologies, with easy to use tools to define and insert such protection networks into executable software ("binary code"). Here at Arxan, nothing gives us more joy than a famous "cracker" getting flamed on the the download bulletin boards for long delays in providing a functioning crack for a "new" release after three months...then six months...then twelve months. At which point, the war is won, because that version is now "old" and the process starts over with a new version from the publisher, with yet stronger, more robust and unique guard protections.

It's time to stop intellectual property theft, it's time to stop software business operations theft, it's time to stop piracy of software in general. Call Arxan and let us show you how.