Shack: When you are relatively sure you've encountered a pirate, what do you do? How do you deal with the person? Mike Russell: Actually, I contact their ISP [laughs]. I know it sounds silly, but ISPs have been a lot more responsive towards pirates than law enforcement has been. Most law enforcement sees piracy as petty theft. It's under a hundred bucks, it's piddly crap. But ISPs, they're really responsive towards pirates, because most pirates are the people who are munching all the bandwidth. So if they have, essentially, a legitimate excuse to boot a pirate off, they'll take it. Shack: A common defense of pirates on the internet is that developers are going to receive relatively little of what people pay for games in the first place. I realize you might not be able to discuss a lot of this in detail, but can you discuss at all how developer compensation and royalties work for games released via retail versus Steam? Mike Russell: I can't go into details on that, but I can actually address how it works for general titles, not SiN Ep. Generally what happens is that a developer is paid, say, $2-5 million to develop a product. When a unit is bought from the publisher, the publisher gets their cut, which covers cost of goods, testing on the publisher side, and so on and so forth. Then, a portion of that money from that sale goes towards what the developer was paid to make it, and it's only once that number reaches what the developer was paid to make the product, that the developer starts making money. So, a good example is, if I'm working on a first party title with a $2 million budget, it takes about $15 million worth of retail sales before I break even. If I'm a developer, because of the way the royalty structure works, it can take about $40 million worth of retail sales before the developer sees a dime of their advance.