How does piracy affect the ability of small gaming companies to compete in the marketplace?
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Piracy can significantly impact small gaming companies by reducing their revenue potential, as pirated copies often cut into legitimate sales. This can hinder their ability to invest in future projects, leading to a lack of resources for development and marketing efforts. Additionally, piracy can distort the perception of a game’s true popularity and success, potentially dissuading consumers from purchasing legitimate copies. As a result, small gaming companies may struggle to compete effectively in the marketplace due to these challenges.