When they say it's "threatening to kill the industry" they really mean "threatening to cut into our bottom line." As you've said, the PS1 had RAMPANT piracy, and it did little to nothing to hurt it's sales in both hardware and software.

The truth about piracy on consoles? Less than 5% of owners do it or even know how. This is a case of greed and profit margins, not the death of the industry.

This. People love the boogieman and perfect scape goat that is piracy. But hypocrisy aside, the harm piracy has (outside china of course) in the industry is much smaler than some people would like costumers to believe. In fact piracy is very usefull in excusing every bad decision and sheer imcompetence of developers and publishers.

The anime is done. A spinoff is currently being published though and it's pretty good.

Is the reason Vita hasn't been hacked really it's memory card format?

I doubt it, 3DS hasn't been hacked yet either and it just uses (Micro)SD. I think its more an attempt to justify those memory cards because they are stupidly expensive to many people when you get down to it.

Strange coming from Sony. Sony has been badly burned by piracy over the years.

I increasingly agree with Valve's appraisal of piracy; it's a service problem. If the pirate offers a game any time, any where, then the pirate is offering a superior service to a vendor. That insight is what made Steam so potent. It is interesting, however, to see how different markets evolve differently. Here in the states, piracy cropped up as an extension of game demoing before companies started to do that en masse. China, however, pirated because of a legal blockade.

One last thing: this "piracy costs the industry millions" line really bugs me. Yes, some sales are lost--especially in markets like China--but in the other markets there are also pirates who could never afford the proper game and pirates who buy legit copies of games they like. My guess is that one pirated copy in five is a true lost sale. And even there, it gives your company exposure and connects you to an audience.

Not really, as someone said, 3ds hasn't been hacked and it uses microsd. And on top of that, there are many "vita" hacks out there that let you play free psp games soo in a way, vita has already been partly hacked just cause of that