This remark from Valve’s Jason Holtman is the analysis of game piracy that I’ve been waiting to hear someone utter for years: the idea that copyright infringement needs to be analyzed from economic rather than purely legal or moral standpoints. It is, essentially, the market telling producers that something is wrong, and that smart producers should respond in a more productive way, rather than seeking legal redress or technological methods of copy protection.

When people infringe on your product because it is not officially available, as most games are not in Russia, make it available. When people infringe on your product because it is too expensive… well, you figure it out.

So far in this recession gaming in general, and the Xbox 360 in particular, has been an oasis of growth and stability. Don’t expect that to continue. Don’t expect people to just knuckle under and fork over $60 because that’s what next-gen games cost now. Myself, I’m taking a hard look at Halo Wars, coming out soon, and wondering if it’s worth $60– $80 for the limited edition with the early release of new Halo 3 maps.