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Hey Goggers;

As many of you know, we announced on last Friday that we are going to introduce regional pricing for 3 new games coming up on GOG.com soon. Looking at the amount of reactions (over 3,500 comments at this very moment), it is obvious that this change is making many of you guys worried. We must have failed to clearly explain why our pricing policy for (some) newer games will change and what this means as a matter of fact for our PC & MAC classic games, which account for over 80% of our catalogue.

To be honest, our announcement was a bit vague simply because our future pricing policy is not 100% set in stone yet and we were just worried to make any promises before it was. You know, GOG.com has been growing quickly (thanks to you!), and the more we grow, the more we are worried to make some of you guys disappointed. This is why we were so (over-)cautious with our announcement.

We should have just been upfront about why we've made these changes and what they mean for us in the future and what we're planning. So let's talk. To be clear: what I'm talking about below is our plan. It's a plan that we believe we can accomplish, but while it's what we want to do with GOG, it may change some before it actually sees the light of day. Please don’t blame me for talking open-heartedly today and telling you about the plans and pricing policy we want to fight for and eventually achieve. The below plans aren't sure. The only guarantee I can give you is that we’ll do our best to fight for gamers while still making sure GOG.com as a whole grows (because well, we still want to be around 50 years from now, you know!). So, enough for the introduction, let’s get things started.

Why does GOG.com need to offer newer games at all?

We've been in business for 5 years now, and we've signed a big percentage of all of the classic content that can be legally untangled. There are still some big companies left we're trying to bring into the GOG.com fold, like LucasArts, Microsoft, Take2 and Bethesda, but what classic titles will we sign in the future once we have those partners on-board? We need to sign newer games or else just fire everyone and keep selling the same limited catalog. Either we bring you “not so old” releases from 2010+ or brand-new AAA titles, because these will become classic games tomorrow. It’s as simple as that.

Also, well, we want to expand beyond just classic games, hence the fact we have been offering you brand-new indie releases for almost 2 years now. Why expanding? Well, obviously, because the more games we sell, the more legitimacy we have on the market and the more likely it is that we can achieve our mission: making all PC & MAC video games 100% DRM-free, whether classic or brand-new titles.

To be straightforward (excuse my French):DRM is shit-- we'll never have any of it. It treats legitimate customers like rubbish and pirates don't have to bother with it. It's bad for gamers, and it's also bad for business and our partners. We want to make it easy and convenient for users to buy and play games; rather than give piracy a try. Happy gamers equals a healthy gaming industry; and this is what we fight for. Anyway, I am sure you well know our opinions about DRM.

To make the world of gaming DRM-free, we need to convince top-tier publishers & developers to give us a try with new games, just like they did with classic games. We need to make more case studies for the gaming industry, just like we successfully did back in 2011 with The Witcher 2. It was our first ever 100% DRM-free AAA day-1 release. GOG.com was the 2nd best-selling digital distribution platform worldwide for this title thanks to you guys, despite having regional prices for it. We need more breakthroughs like this to be able to show all the devs and publishers in our industry that DRM-free digital distribution is actually good for their business and their fans. And when I say breakthroughs, I am talking about really kick-ass games, with a potential metacritic score of 85% or more, AA+ and AAA kind of titles.

And this is exactly why we signed those 3 games we told you about last Friday. We believe those 3 games can be massive hits for hardcore gamers, that they can help us spread the DRM-free model among the industry for newer games and we did our best to convince their rights holders to give GOG.com a try. One of those games, as you see already, is Age of Wonders 3. We're planning more titles even beyond these first 3 soon.

Alright, but why is regional pricing needed for those (only 3 so far!) newer games then?

First of all, you have to be aware of an important fact when it comes to newer games: GOG.com cannot really decide what the prices should be. Top-tier developers and publishers usually have contractual obligations with their retail partners that oblige them to offer the game at the same price digitally and in retail. When they don’t have such contractual obligations, they are still encouraged to do so, or else their games might not get any exposure on the shelves in your favorite shops. This will change over time (as digital sales should overtake retail sales in the near future), but as of today, this is still a problem our industry is facing because retail is a big chunk of revenue and there’s nothing GOG.com can do to change that. We need to charge the recommended retail price for the boxed copies of the games in order for developers (or publishers) to either not get sued or at least get their games visible on shelves. You may recall that our sister company CD Projekt RED got sued for that in the past and we don’t want our partners to suffer from that too.

On top of that, you have to know that there are still many top-tier devs and publishers that are scared about DRM-free gaming. They're half-convinced it will make piracy worse, and flat pricing means that we're also asking them to earn less, too. Earn less, you say? Why is that? Well, when we sell a game in the EU or UK, VAT gets deducted from the price before anyone receives any profit. That means we're asking our partners to try out DRM-free gaming and at the same time also earn 19% - 25% less from us. Other stores, such as Steam, price their games regionally and have pricing that's more equitable to developers and publishers. So flat pricing + DRM-Free is something many devs and publishers simply refuse. Can you blame them? The best argument we can make to convince a publisher or developer to try DRM-Free gaming is that it earns money. Telling them to sacrifice income while they try selling a game with no copy protection is not a way to make that argument.

Getting back to those 3 new upcoming games coming up. The first one is Age of Wonders 3, which you can pre-order right now on GOG.com. The next 2 ones will be Divine Divinity: Original Sin and The Witcher 3. We’re very excited to offer those games DRM-free worldwide and we hope you’ll love them.

Still, we know some countries are really being screwed with regional pricing (Western Europe, UK, Australia) and as mentioned above, we’ll do our very best, for every release of a new game, to convince our partners to offer something special for the gamers living there.

And don’t forget guys: if regional pricing for those few big (as in, “AA+”) new games is a problem for you, you can always wait. In a few months. The game will be discounted on sale, and at 60, 70, or 80% off, the price difference will be minimal indeed. In a few years it will become a classic in its own right, and then we have the possibility to to make it flat-priced anyway (read next!) The choice is always yours. All we are after is to present it to you 100% DRM-free. We are sure you will make the best choice for yourself, and let others enjoy their own freedom to make choices as well.

So, what is going to happen with classic games then?

Classic content accounts for about 80% of our catalog, so yes, this is a super important topic. We've mentioned here above that we can’t control prices for new games, but we do have a lot of influence when it comes to classic games. GOG.com is the store that made this market visible and viable digitally, and we're the ones who established the prices we charge. We believe that we have a good record to argue for fair pricing with our partners.

So let's talk about the pricing for classics that we're shooting for. For $5.99 classics, we would like to make the games 3.49 GBP, 4.49 EUR, 199 RUB, and $6.49 AUD. For $9.99 classics, our targets are 5.99 GBP, 7.49 EUR, 349 RUB, and $10.99 AUD. This is what we’ve got in mind at the moment. We’ll do our best to make that happen, and we think it will. How? Well, we have made our partners quite happy with GOG.com's sales for years - thanks to you guys :). We have created a global, legal, successful digital distribution market of classics for them. This market didn't exist 5 years ago. By (re)making all those games compatible with modern operating systems for MAC and PC, we've made forgotten games profitable again. When it comes to classic games, we can tell them that we know more about this market than anyone. :) Being retrogaming freaks ourselves, we know that 5.99 EUR or GBP is crazy expensive for a classic game (compared to 5.99 USD). We have always argued that classic games only sell well if they have reasonable prices. Unfair regional pricing equals piracy and that’s the last thing anybody wants.

What’s next?

We will do our very best to make all of the above happen. This means three things:

First, we will work to make our industry go DRM-free in the future for both classic and new games (that’s our mission!).

Second, we will fight hard to have an attractive offer for those AA+ new games for our European, British and Australian users, despite regional pricing that we have to stick to.

Third, we will switch to fair local pricing for classic games, as I mentioned above.

TheEnigmaticT earlier mentioned that he would eat his hat if we ever brought DRM to GOG.com. I'm going to go one step further: by the end of this year, I'm making the promise that we will have converted our classic catalog over to fair regional pricing as outlined above. If not, we'll set up a record a video of some horrible public shaming for me, TheEnigmaticT, and w0rma. In fact, you know what? Feel free to make suggestions below for something appropriate (but also safe enough that we won't get the video banned on YouTube) so you feel that we're motivated to get this done quickly. I'll pick one that's scary enough from the comments below and we'll let you know which one we're sticking to.

I hope that this explanation has helped ease your worry a bit and help you keep your faith in GOG.com as a place that's different, awesome, and that always fights for what's best for gamers. If you have any questions, comments or ideas, feel free to address them to us below and TheEnigmaticT and I will answer them to the best of our abilities tomorrow. We hear you loud and clear, so please do continue sharing your feedback with us. At the end of the day GOG.com is your place; without you guys it would just be a website where a few crazy people from Europe talk about old games. :)

I end many of my emails with this, but there's rarely a time to use it more appropriately than here:

“Best DRM-free wishes,

Guillaume Rambourg,
(TheFrenchMonk)
Managing Director -- GOG.com”
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synfresh: What everyone continues to miss is the very basic principle that GoG is a business first. They are in the digital distribution business where there is a lot of competition. Yes, they can continue on the path they are on and simply stick to (mostly) classic and indie games. Yes other distributors such as Desura and DotEmu do this to an extent and are successful. But at some point the question they need to ask is, do they just want to be like Desura or DotEmu or do they want to compete with the big boys, specifically Steam?
Its been pointed out in the past GOG is second only to Steam.
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synfresh: What everyone continues to miss is the very basic principle that GoG is a business first. They are in the digital distribution business where there is a lot of competition. Yes, they can continue on the path they are on and simply stick to (mostly) classic and indie games. Yes other distributors such as Desura and DotEmu do this to an extent and are successful. But at some point the question they need to ask is, do they just want to be like Desura or DotEmu or do they want to compete with the big boys, specifically Steam? There is no way they can if they don't offer new titles. There is only so much 9.99 and 5.99 titles you can sell and yet still be in the conversation when talking about the big boy distributors. GoG wants to advance, they want to be at that table. They are not there now (no matter what people here think). New releases come out every week and GoG isn't even in that conversation in terms of sales. Meanwhile millions of dollars are getting generated for Steam, for Origin, for Gamersgate, for Amazon.
Desura gets a TON of shovelware, and DotEmu almost never gets new games and just sort of chills in a perpetual state of limbo. I don't want GOG to be like either of them, though I do like them.
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Lilim: CDP is a publisher for W3 in Poland, Warner Bros for the rest of the western countries. You seem to be misdirecting your anger.
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wintermute.: Oh, warner hold CDP hostage and forced them to sign a deal to the terms of warner because there is no alternative out there? Well, every day I learn new things ... :)
I think you've missed my point - all I did was correct the mistake jamotide did, by mixing up who the publisher for W3 is, that's all. As for the reason why CDP chose WB - I have no information in that matter, so you'll have to ask them yourself.
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synfresh: What everyone continues to miss is the very basic principle that GoG is a business first. They are in the digital distribution business where there is a lot of competition. Yes, they can continue on the path they are on and simply stick to (mostly) classic and indie games. Yes other distributors such as Desura and DotEmu do this to an extent and are successful. But at some point the question they need to ask is, do they just want to be like Desura or DotEmu or do they want to compete with the big boys, specifically Steam?
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Niggles: Its been pointed out in the past GOG is second only to Steam.
Tell me again how much GoG did in profit last year then tell me what you can estimate Steam does in a year or even in a month. If we were comparing this to baseball, you are 2nd in a division where the first place team is 30 games ahead of you. GoG is trying to close that gap.
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Magnitus: Only the 3 new games and some future AAA/AA+ games will be regionally priced (as in, different prices even after currency conversion).
Hate to break it to you, but if you re-read the letter, ALL games are going to be regionally priced by year's end.
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paulrainer: they have made a huge error in judgement and imo its unfixable
Very little is unfixable, but they lost trust and that will be hard to regain. Just look at all the posts where people think DRM might be a possibility for Gog. That would have been unthinkable before last Friday.
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synfresh: What everyone continues to miss is the very basic principle that GoG is a business first. They are in the digital distribution business where there is a lot of competition. Yes, they can continue on the path they are on and simply stick to (mostly) classic and indie games. Yes other distributors such as Desura and DotEmu do this to an extent and are successful. But at some point the question they need to ask is, do they just want to be like Desura or DotEmu or do they want to compete with the big boys, specifically Steam? There is no way they can if they don't offer new titles. There is only so much 9.99 and 5.99 titles you can sell and yet still be in the conversation when talking about the big boy distributors. GoG wants to advance, they want to be at that table. They are not there now (no matter what people here think). New releases come out every week and GoG isn't even in that conversation in terms of sales. Meanwhile millions of dollars are getting generated for Steam, for Origin, for Gamersgate, for Amazon.
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fortune_p_dawg: Desura gets a TON of shovelware, and DotEmu almost never gets new games and just sort of chills in a perpetual state of limbo. I don't want GOG to be like either of them, though I do like them.
You're not also the one looking at GoG's business ledger either. Where does DoTEmu sit in the grand scheme of all the digital distributors?
high rated
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paulrainer: they have made a huge error in judgement and imo its unfixable
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silentbob1138: Very little is unfixable, but they lost trust and that will be hard to regain. Just look at all the posts where people think DRM might be a possibility for Gog. That would have been unthinkable before last Friday.
once consumers lose confidence then that is unfixable as these customers will not buy anything from them anymore.
and as you already said 2 weeks ago i was pretty confident GOG had a fair price policy and drm free

this week only 1 of those still stand - and in the future , do i have confidence their business model will change yet again and do away with drm ?

i have zero confidence in what they tell us as their words and previous actions do not match.

they are happy to sell their souls and values to the publishers to screw gamers out of cash.
Post edited February 27, 2014 by paulrainer
Regional pricing is the weapon of the oppressors.
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skeletonbow: Surely you jest. In all of the interviews, videos of GOG folk I've seen to date I get a totally different impression of them. They come across to me as people who are just like me, who want to see a better situation out there for people but have difficult decisions to make sometimes. They seem like the type of people who I'd be happy to invite into my home for dinner and a LAN gaming session or to crack some beers with while we reminisce about decades old games and how we'd like to see gaming move forward in the future to give gamers a better experience globally.

I think they genuinely have a set of great values and want to do the best things possible for gamers including the gamer inside each of themselves, but that they're faced with the reality of the "system" that is in place and that to attain the goals they'd like to attain in bringing DRM-free to the masses they've realized they have to make a few compromises to issues that are important but nowhere near as important as DRM-free is along the way, and they're trying their best to figure out how to do that in a way that has the least impact on people as possible.

I don't get the slightest hint from any GOG employees or what they've said or done in the past including now, that they are evil, that they are greedy, or that they want to rip off as many people as possible, nor that they sit around plotting evil deeds on their customers. So the only thing I can do is assume your statements are cynical humour, and like the Hitler video someone posted - I am a cynic myself and can appreciate such things even if the message in them is in opposition to my own views/opinions. If you are not attempting to be cynical I still respect your opinion of course but I think I'll choose to see it as humour anyway. ;oP
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CarrionCrow: Being honest, I feel the exact same way about them. That feeling is part of the reason why I'm getting more than a little perturbed. (Avert your eyes, oh delicate squeamish masses, I'm not just ass-kissing here, I'm on the verge of virtually rimming every single GOG staff member. It'll be sloppy, but I'll try to make it sexy as well. ;) ) I too think they're good, cool people trying their best in a shitty system, hanging on to everything they can while the odds are against them. It sure as hell can't be easy in such a situation. And as such, seeing them get slammed from one end to the other isn't exactly fun. They aren't going to get into forum fighting, their level of professionalism is higher than that. They just get blasted. So yes, long story still just as long, all those comments are meant strictly as humor.
That. Yet, I still have a feeling (or you can call it my personal opinion) that the whole uproar is less about the introduction of so called regional prices, but about the way it was handled (ekhm, good news spin, quick removal of "one world one price" materials across the web). A typical PR nightmare that they have to go through now, no way back really.

As for the clip mentioned - I did found it hilarious, as it was meant to be that way :-)
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fortune_p_dawg: Desura gets a TON of shovelware, and DotEmu almost never gets new games and just sort of chills in a perpetual state of limbo. I don't want GOG to be like either of them, though I do like them.
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synfresh: You're not also the one looking at GoG's business ledger either. Where does DoTEmu sit in the grand scheme of all the digital distributors?
Yes I am. They send me a copy of this magical ledger every morning (which I read while drinking my tea) and it gives me SUPERPOWERS!!!

Seriously though, DoTEmu seems more like a porting/development house with a sort-of robust storefront, so I could maybe see why distribution isn't their forte. It also stands as the only online retailer to ever offer Vampire The Masquerade Bloodlines DRM-free, though they removed it a while ago (thank goodness I got my copy).
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synfresh: What everyone continues to miss is the very basic principle that GoG is a business first. They are in the digital distribution business where there is a lot of competition. Yes, they can continue on the path they are on and simply stick to (mostly) classic and indie games. Yes other distributors such as Desura and DotEmu do this to an extent and are successful. But at some point the question they need to ask is, do they just want to be like Desura or DotEmu or do they want to compete with the big boys, specifically Steam? There is no way they can if they don't offer new titles. There is only so much 9.99 and 5.99 titles you can sell and yet still be in the conversation when talking about the big boy distributors. GoG wants to advance, they want to be at that table. They are not there now (no matter what people here think). New releases come out every week and GoG isn't even in that conversation in terms of sales. Meanwhile millions of dollars are getting generated for Steam, for Origin, for Gamersgate, for Amazon.
I got news for you: it aint business if there aren't enough customers left. Just giving a hint.
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skeletonbow: Personally I think some companies do this for legitimate reasons and others for greedy reasons and I don't think they should all be painted with the same brush per se. But for one particular example, if I was a game company selling my game for $5 a pop in North America of which I got $2 of that in profit, but in Europe there were government enforced taxes on top of the game price and the retailer had a policy of fixed global pricing and the taxes ate into $1 of that, then either my company that produced the game loses half of our profit (the $2), or both my company and the distributor (in this case GOG.com) split the loss. So at $1 tax, that would leave $4 profit, and with the 40% profit of that coming to my company, we would only end up receiving $1.60 for our game instead of $2. In this case it is the government(s) of Europe which are causing the unfairness. The unfairness is ultimately either going to the end customer the tax is targeting, or the business trying to produce a profit is unfairly getting shafted by it, or the distributor, or some split between the 3. What would people consider fair? Split the taxation 3 ways with the publisher, developer and customer all paying a portion of the tax? Or is not selling the game at all more fair? Honest question for this one scenario only. There are other scenarios in other countries which might be greatly different and each deserve their own question of similar nature. Fairness though needs to be considered from all sides IMHO, and not just the end paying customer. Businesses deserve fairness too.
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GabiMoro: It would be fair if the customer pay the tax. If I don't like it then it's my duty to vote and change the persons who guvern my country with others which promote lower taxes or other method of taxation.

Let's face it, we were spoiled by this "one world, one price". This is not fair for the developer, nor for GOG which have to pay the tax themselves.

On other hand, selling a game at a bigger price than the regular price + tax is an abuse. The australians prices are absurd, I'm wondering why do they bother to buy games.
Indeed, I agree completely, and being in Canada we have the HST and prior to that the GST which is a mandatory 13% tax applied on top of every product or service we buy not only in Canada but abroad as well. I believe it may be similar to the VAT in the UK or elsewhere but I don't understand the details of how other countries such taxes work. I don't know what the state of our tax is on GOG games, or whether it might change in the future, and I hope that I don't have to pay it, but if I am now or in the future it is just a reality that I end up having to face one way or another whether I like it or not and whether GOG likes it or not. For me to expect GOG.com and/or a publisher to suck up a 13% hit in profit on a game they're selling me just because I'm Canadian and my government might choose to tax such is completely unfair to those companies. A country could decide to tax such things at a 50% rate, GOG has no control over that, nor does some publisher and it is totally reasonable for them to expect you to pay your own taxes whether they are on top of the price you're offered or hidden inside the price for convenience. People might get upset about that and have a right to be upset, but they should be upset about the tax and who is responsible for the tax - their own government, not be upset at the law abiding company that is simply doing their legal duty to collect tax while not feeling obligated to suffer punishment from some particular country's tax code on their profit margins.

There are other ways besides taxes that regional pricing could affect people of course such as currency exchange, trade tariffs or other things. Some of those things might be something ultimately decided by one's local government also and not something a company should be expected to eat up and suffer losses for. Currency exchange is another thing that some companies that do the conversion rape people with ridiculous fees, and that is something that should be directed at those companies and not the publisher/distributor of a game IMHO. People need to take their fight to the people responsible for bad laws or where the actual greed practice is occurring and not strike down the honest company trying to figure out how to make their customers happy and make a reasonable profit at the same time.

Now I'm not saying that the game developers and publishers are all innocent and can pass all of these price differences on to the various local governments around the world outright in every case. Some companies are greedy, and will try to make people in certain countries pay more just because they can get away with it and make the profit they want.

So there are both reasonable and unreasonable reasons why people can end up needing to pay different prices for things. Do we all pay the same price for milk? Bread? Beans? Pineapples are $3-5 each here where I live in Canada. A friend who lived in Guatamela said they're the equivalent of 30-50 cents there. That's unfair! Ok, so I am paying some shipping fees, profits for the various parties involved in moving them, storing them, keeping them from spoiling, and selling them to me locally, and that adds up to a 6+fold increase in price. Is it fair? Well, the average wage here is likely much higher than it is in Guatamala too. It might even be higher enough wage here that indexed to income my $5 pineapple is actually cheaper to me than someone living and working in Guatamala paying 30 cents for theirs.

How do companies sell things globally and even end up able to form a math equation that can take all this crap into account and end up with something that every customer out there thinks is fair? If you ask me, in the perfect world where every company is completely honest and has no shred of greed or ill will against their customers at all - they lose before they start because it is impossible to have anything resembling "fair" globally whether one means "fair for the customer" or "fair for the company".

The world at large is "unfair" by definition, and that certainly isn't limited to gasoline, fresh drinking water, pineapple or even video games. I'm just saying. ;oP
It seems to me that the one big thing right now that GOG is guilty of is pulling a Molyneux. Just read an article where he talks about how he gets so excited for how he wants things to be that he inevitably gets blasted to crap when he isn't able to pull off the vision he has in his head. He gets all worked up, extremely passionate, but the technical side can't measure up. Of course GOG wants fair pricing worldwide. Hell, even as a near-sociopathic, empathy-devoid American, I don't like the idea of people in other countries getting nailed on prices unfairly. But walking into a rigged game and saying you want to change everything up doesn't instantly make everything change. Steam is taking their core away, bit by bit. That can't be emphasized enough. The more Steam has classic games, the more GOG has got to feel the pressure to bring more to the table. And so they get squeezed between what they prefer and what the game is right now.
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skeletonbow: Surely you jest. In all of the interviews, videos of GOG folk I've seen to date I get a totally different impression of them. They come across to me as people who are just like me, who want to see a better situation out there for people but have difficult decisions to make sometimes. They seem like the type of people who I'd be happy to invite into my home for dinner and a LAN gaming session or to crack some beers with while we reminisce about decades old games and how we'd like to see gaming move forward in the future to give gamers a better experience globally.

I think they genuinely have a set of great values and want to do the best things possible for gamers including the gamer inside each of themselves, but that they're faced with the reality of the "system" that is in place and that to attain the goals they'd like to attain in bringing DRM-free to the masses they've realized they have to make a few compromises to issues that are important but nowhere near as important as DRM-free is along the way, and they're trying their best to figure out how to do that in a way that has the least impact on people as possible.

I don't get the slightest hint from any GOG employees or what they've said or done in the past including now, that they are evil, that they are greedy, or that they want to rip off as many people as possible, nor that they sit around plotting evil deeds on their customers. So the only thing I can do is assume your statements are cynical humour, and like the Hitler video someone posted - I am a cynic myself and can appreciate such things even if the message in them is in opposition to my own views/opinions. If you are not attempting to be cynical I still respect your opinion of course but I think I'll choose to see it as humour anyway. ;oP
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CarrionCrow: Being honest, I feel the exact same way about them. That feeling is part of the reason why I'm getting more than a little perturbed. (Avert your eyes, oh delicate squeamish masses, I'm not just ass-kissing here, I'm on the verge of virtually rimming every single GOG staff member. It'll be sloppy, but I'll try to make it sexy as well. ;) ) I too think they're good, cool people trying their best in a shitty system, hanging on to everything they can while the odds are against them. It sure as hell can't be easy in such a situation. And as such, seeing them get slammed from one end to the other isn't exactly fun. They aren't going to get into forum fighting, their level of professionalism is higher than that. They just get blasted. So yes, long story still just as long, all those comments are meant strictly as humor.
That imagery, damn you for making me picture this lol.
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Personally GOG is my favorite digital distributor, I still like them; but I'd be lying if i said the way they handled this didn't make me share some of the concerns others have.