So, to give you a bit of industry info on this - the long and short of it is this:
We used to design and manufacture new AWPs, and give 25 of them (free of charge) to pub companies to test. Great. That's a ~£80k investment once you factor in salaries, overheads and of course, building and transporting the machines.
If your game took enough money, the pub company would buy between 400 and 2000 machines.
Now suppose your machine didn't do very well, which could be for any number of reasons - not always because it's a bad game. We had pubs with test machines in catch fire (closed = no money!), machines get smashed up, stolen (we once got called by the police to a "colourful object in a farmers field"), covered in beer or fag ash etc.....
You don't get a second chance. If your machine fails test, that's it. Done. Someone else's game goes on test and the whole world moves on.
Prior to the 2005 Gambling Act, you weren't allowed to profit share, so the pub company took all the profits from the machine - you as the manufacturer got £0. So you've burnt £80k and got nothing but a pile of machines, often with bits missing (or smashed) and no prospect of any sales of this game.
How many of you think this is a great business model? That only has to happen a few times (and remember ~1 in 4 machines is a "hit") and you're in financial dire straits. I lost count the number of times Maygay, JPM and others cut jobs, did 2 day weeks in the factory, etc, to keep the lights on, hoping to have another hit game. Bell Fruit in the mid 90s almost went pop I don't know how many times - only their Dutch games kept them afloat.
OK. So on to dongles.
Dongles smooth that curve (read: cliff face) of revenue when a game is launched. Instead of selling machines, they are now leased or given, with an agreement to share the profits. To control the use of the machine, a dongle obviously stops anyone operating the machine - and making money - when the manufacturer isn't getting a cut.
That is a much fairer way for the people who actually take the risk and spend the money to develop the game.
I agree for the 2nd hand "home" market they are a problem, but so many jobs were lost and companies hitting the wall because of the insane business model that had developed over the decades.
Imagine going to your local Ford garage, being given a car to test drive - crashing it, writing it off and then just returning it and say "sorry mate, don't really like it". Then come back the next day and take another car out. Repeat that again and again. That's how the business was - totally crazy.
These days with server-based gaming developers can monitor the revenue and get their %. Much better.
So, all I will say is, try and see why it happened. Maybe someone will crack/make a new dongle that has unlimited time.
Don't get me started on arcade owners. They buy 1 machine and then ring up 5 years later asking for a software update....errr...NO.
Tsk!!