The Role of Digital Piracy in Video Game Industry on the Stock Market

Nowadays, there are a lot of problems connected with digital world. One of the most important digital piracy of media goods. In last decade this problem was grown up significantly. Many investigations show that digital piracy is not only about something negative, but it can bring additional profit to original producers. Most of studies were based on economic models or theories, but almost no one based on real facts. In this paper was taken the actual data (was used) such as stock returns, market returns and the actual fact of digital piracy by example of. In this investigation the author used games with the similar scale and sorted it by 10 point system for the subsequent event study by The Fama-French Three Factor Model. The results show that digital piracy has a negative influence on stock returns. The strongest dependence in data was noticed in middle-level game. In this way, the producers of videogames had to thoroughly protect their products.