Actually, statement "consumers don't want to pay for it" by definition means lack of demand; demand is the # of people that want the product at that price.

A pirated copy demonstrates a wish for the product but does not neccessarily demonstrate a real market with a real demand for it at that price point.

For example, if you look globally, there are huge populations that have the capability to play pirated games but (a) can't consider $20 as affordable; and (b) can't use western payment infrastructures such as credit card payments.

If you look locally, a person who would play World of Goo for free but if offered it at $20 would choose some other entertainment - that's not a potential customer, that's shouldn't be counted in demand.

The elephant in the room is, of that 80% of piraters, what percentage of them were actual potential customers at the $20 price, and what percentage had no interest in the game at that price. If 0% of the piraters were really customers, then you lost nothing through pirating and sold to the entirety of your actual customer base, which just happens to be only 20% of all the people who have your product. If 100% of the piraters were customers, then you have indeed lost out on most of your potential revenue. Of course neither of us can say what that percentage really is, I think probably very close to 0% and I expect you think much closer to 100%.

Many pirates in my country (some %, probably less than 50%) would buy a game... but they don't have the tools required - International Credit Card, which basically only adults with a good job are given, and which most DON'T use on the Internet (the local Groupon clone revolutionized local e-commerce by offering payments on a local physical payment system).

When I investigated a micropayments startup (we wanted to try it in our country), we found some surprising facts - a huge % of the world's population don't have access to banking systems, even if they DO have some disposable money and want to pay for online games - non-cc alternatives to buying Facebook currency and such were huge requests when we did our customer research.

I haven't played games in a long time but when I did magazines would give away discs with demos of games that had just been released. Is it possible to try games before you buy, on steam for example, or do you have to jump in and buy the game without trying it?

> $20 for a game that takes >10 hours to complete

I don’t know about you, but for €15, I could enjoy 10 hours of films in a cinema and back then™ when I was playing and buying games, I got a few months out of a single game (Pharaoh and Caesar III come to mind). 2$/h is definitely not a ‘fair price’ for a game I have to run on my own computer.