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Old 21st May 2009
Here for the gear

The effect of piracy is pretty well-documented by now with many-many examples of what happens when a crack appear on the market.

As an example I remember the consensus within the shareware authors association that sales dropped sharply 50-60% after a crack or keygen appeared. When a new uncracked version was introduced sales started to rise again - but very slowly.

Lowering the cost has no effect on piracy, look at iPhone-software that cost a few dollars and still there is piracy - I saw one developer report numbers and his sales were down 65% after the crack appeared.

So yes, piracy hurts the creators.