The problem to this question is who you are asking the question to: the gamer or the software developer/publisher.
If you're asking the gamer, it is a morality question. There are no right answers to such questions, despite legal implications.
If you ask the software developer/publisher, the question is typically yes. Every single game that is pirated, and not paid for, is lost revenue. That's simple math, and there isn't any plausible way to deny that.
Thus the question should be, is piracy that bad that it causes credible damage to either the gamer or the software developer/publisher?
My answer would be a resounding yes in the overseas market. I've been there, and I can tell you that you can buy a pc game for about a fourth or a third of what you pay for it stateside/europe. They don't play by the rules in most markets, not just in software, so thats a larger issue that involves not just our world of computer games but a larger goods market as a whole.
Stateside/europe, I would say no.
The problem with pc games is in this area is not piracy, its the companies themselves and the nature of the pc market. If you have a game concept, you decide which system to put it on. Console games are pretty set and bug free once released (although this is becoming less and less true in time). If you release a game for the pc, you are releasing it to a smaller demographic. Not only that, this demographic virtually has no two machines alike. You're going to be working long after release to fix the invariable problems that beta testing didn't catch, if you even did credible beta testing at all (ahem...bioshock..ahem). And if you have a buggy product, the pc gamers will literally castrate you and tell everyone and their brother to stay away from their products to save them countless hours of reinstallation and desk/head pounding.
The real winners in the pc market, as said previously in this thread, are those that manage to make quality, fun games that have active communities and continue to sell over the long haul, especially if those games are top tier hardware requirement games and everyone else catches up to enjoy them. That is why crysis will keep selling in the next two years. Same with a Neverwinter Nights or a World of Warcraft. Not so with most unforgettable games.
Piracy is not the problem. It's the lack of quality that has permeated the pc game industry as more and more developers jump ship to the less problematic higher demographic world of consoles. The industry can point fingers all they want, but as long as they keep marketing something worth buying, I'll pay for it.
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