From what I've heard, piracy doesn't hurt Game Developers half as much as it does the actual publishers. As with most creative enterprise (comic books are probably the strongest example), the actual artist does not actually make that much from their continued sales.
It's more hurtful on independents who publish their own stuff.
In Australia, they've fucked up in understanding the market, and actually encouraged piracy indirectly. A number of people have been driven to piracy because of this:
Local Music Store has a large 'catalogue' of CDs for their store. However, only 20% of that catalogue actually sells that well; 90% of their volume are those 20% of their CD collection. It thus is not cost-effective to be storing the other 80% of their catalogue in the store. They don't have the room, and they won't sell fast enough.
Local Music Store also has an online store. The upload costs of their catalogue are minimal. They could put on their entire catalogue. But they don't. Despite having chosen not to sell 80% of their material in store, they don't want to compete with their own future CD sales, so they refuse to release their music on their online store. Unable to purchase the CDs they want, potential customers are forced to pirate the songs.
Another thing stores do in Australia is artificially hold back release dates so we get things later than everyone else. There's no localisation issues in the product, they just do it to drive up demand. Aggrieved at not being able to play/read/watch the stuff they want, Australians take acquiring it into their own hands.
tl;dr - Many companies have tried to use their IP rights to be anti-competitive (especially to prevent future-competition), and so the consumers have moved to an alternative. The companies should not be surprised.
There's a lot of bullshit in IP law. My personal grievance is with the way the US Patent Office just rubber stamps patent applications so things get awarded to companies and individuals that should be unpatentable for being insufficiently specific, or only being an idea (patents protect implementation, not concepts) like "I patent the idea of making a car that's powered by hydrogen; I don't actually know how to make such a car, but if anyone ever works it out, it was MY idea".
It's more hurtful on independents who publish their own stuff.
In Australia, they've fucked up in understanding the market, and actually encouraged piracy indirectly. A number of people have been driven to piracy because of this:
Local Music Store has a large 'catalogue' of CDs for their store. However, only 20% of that catalogue actually sells that well; 90% of their volume are those 20% of their CD collection. It thus is not cost-effective to be storing the other 80% of their catalogue in the store. They don't have the room, and they won't sell fast enough.
Local Music Store also has an online store. The upload costs of their catalogue are minimal. They could put on their entire catalogue. But they don't. Despite having chosen not to sell 80% of their material in store, they don't want to compete with their own future CD sales, so they refuse to release their music on their online store. Unable to purchase the CDs they want, potential customers are forced to pirate the songs.
Another thing stores do in Australia is artificially hold back release dates so we get things later than everyone else. There's no localisation issues in the product, they just do it to drive up demand. Aggrieved at not being able to play/read/watch the stuff they want, Australians take acquiring it into their own hands.
tl;dr - Many companies have tried to use their IP rights to be anti-competitive (especially to prevent future-competition), and so the consumers have moved to an alternative. The companies should not be surprised.
There's a lot of bullshit in IP law. My personal grievance is with the way the US Patent Office just rubber stamps patent applications so things get awarded to companies and individuals that should be unpatentable for being insufficiently specific, or only being an idea (patents protect implementation, not concepts) like "I patent the idea of making a car that's powered by hydrogen; I don't actually know how to make such a car, but if anyone ever works it out, it was MY idea".