"And why has the AAA PC gaming scene been so severely diminished over the years, especially when it used to be the opposite before high speed internet became available?"
Correlation does not imply causation. Piracy has been with us since floppy discs, code-wheels & manual passwords ("enter the 3rd word on the 4th line of page 6"). "
Here my friend, this game is great" [hands over physical floppy disc / CD-ROM in person that goes nowhere near the Internet]. Pre-broadband, people also swapped audio CD's & DVD's to rip, exchanged MP3 players for the weekend, photocopied expensive college text books, Microsoft Office CD's (or Wordperfect 5.1 for MS-DOS floppies if you want to go back far enough), all in person. The Internet didn't cause all of this, it just made it more visible & trackable. And the pre-broadband "golden era" meant devs actually had to finish their games before they sold them as they couldn't send out 2GB patches to those on 56k dial-up modems paying per-minute metered phone charges, so "release day" quality control had to be higher.
As for why the AAA PC scene has diminished, there are a multitude of contributory reasons that have a far bigger impact than piracy alone : an AAA industry shift to cross-platform development now universally designed to the Lowest Common Denominator (ie, made for consoles & controllers then ported up with PC controls tacked on as an after-thought), dumbing down for the "casual" audience or nerfing controls / game mechanics so they fit onto controllers limited buttons, ugly UI due to no attempt at 2ft monitor vs 8-10ft TV view distance HUD scaling, a fetish with trying to turn games into overly-cinematic railroad interactive movies, coming up with one winning game then "spam-sequelling" them to death with 20-30 cash-ins of the same game repackaged over & over, etc, have all lowered sales to varying degrees (and a non-sale doesn't = 1:1
"someone must have stole it purely because it's available to torrent" and vice-versa). "Account linked" DRM also has far more to do with stamping out the legal 2nd-hand resale market as it does anti-piracy (as a few industry figures have let slip in the past).
If you want a real visible correlation - the more buggy & consolized AAA titles became, the more the developers have to resort to "review embargos", killing off pre-release downloadable demo's (that reward only good games but seriously harm the bad ones), hyping pre-order bonuses that better reward uninformed purchase decisions over post-release informed purchases (bad games benefit far more from blind pre-orders), even Ubisoft "gifting" (ahem) Nexus 7 tablets to journalists during Watch Dogs hype events... Meanwhile, my own AAA purchases have plummeted over the past 20 years of gaming from being 6:1 AAA:Indie in the 90's / early 2000's to virtually the reverse 1:6 today, not due to "piracy" but sheer disinterest / disillusionment in above mentioned "consoley feel with PC as an afterthought" AAA games.
The PC gaming market should be destroying consoles across the board in both game sales and developer investment, but it isn't. Only when you count MOBAs, MMORPGs and Indie games does the PC platform begin to shine..
See above. Console gamers are buying consoles for reasons other than GFX (that's why they put up with 720p / 30fps). And the experience on PC's these days isn't "superior" at all when games are released with broken keyb + mouse support / screwed up HUD with size 40 fonts and the usual suggested "solution" is
"buy a controller and sit 8ft away or wait 2-6 months for a patch"... And if money is pumped into marketing rather than hiring creative designers capable of producing decent cross-platform UI / controls without sacrificing one platform for 4 others, then it won't improve things either for the PC. If anything, excessive marketing is increasingly having the opposite effect with people getting sick of "over-hype", and over-hyped games getting slammed disproportionately harder in user reviews / gaming forums for not living up to their "glossy brochure" fake-E3 footage promises.
AAA PC exclusive game development is practically barren though, because the risks of rampant piracy are too great for developers to look the other way.
It's "barren" due to a total lack of imagination, stale recycled worn out "formulas" as a substitute for "risky" creativity, LCD design, and virtually non-existent quality control that increases the level of derision especially for the big two (Ubisoft & EA), who seem pathologically incapable of releasing a modern game that isn't broken out of the box in some major way. Release after release this year of mega-budgets (Watch Dogs, AC Unity, DAI, BF4, Simcity, Need for Speed Rivals, etc) has been one half-broken joke after another. Game after game they've got slammed in Metacritic user reviews many spelling out specific game-breaking bugs or poor controls - "
but it's never our fault, anyone who says otherwise must be a hating pirate" is wearing very thin these days when simultaneously other quality games get high user reviews and sell well even with no DRM at all (Divinity Original Sin, Witcher series, Dragon Age Origins, etc).
The REAL reason the AAA industry is in trouble is their development & marketing budgets have both swollen many times greater than inflation-adjusted equivalents of 10-15 years ago, yet all that extra money seems less & less capable at producing titles on time & on budget that work out of the box, and coming up with new fresh-feeling original titles capable of standing on their own merits without having to be "franchised to death". The "formula" for AAA games has grown so stale and predictable (FPS = 2 weapon limit, cover-based "peashooter vs tank" gunplay, auto healing, brown & grey, quicksave-less checkpoints, cutscenes every 2m, etc / "modern inclusive RPG" = trying and failing to be both "MMO action oriented" and "heavy tactical" in the same game at the same time and falling flat on its face trying to be everything to everyone), that people are openly crying out for new "middle-weight" developers like Larian, CDPR, etc, to step forward and dilute the effluence with games focused with a sub-genre, but done really well.
Piracy may have some impact - up to point - but it also gets wildly abused as one huge convenient "one size fits all" cop-out, often by devs wanting to protect their stock values by shifting the "
our game got voted down for bad design" blame onto an externality. And not just for gaming either. Remember former RIAA head Hillary Rosen's nickname "RNG" (ie, the Random Number Generator - due to the way she invented a new figure for piracy each time (including a record of 3 different figures within the same 10min speech...)
If Denuvo continues to frustrate game crackers for months, or even indefinitely, then the sales should be strong on PC..
Given that Ubisoft & EA have both claimed "
up to 95% piracy rates on the PC" before, and given DRM-free Dragon age Origin sold 3.2m copies, it will sure be interesting to see what excuses get peddled out when DAI fails to achieve 64m copies sold for the PC if the game remains uncracked and every claimed "lost sale" is not turned into a purchase.
"It's the economic downturn. It's the bad weather. It's..." 