I think Piracy is a problem but the extent of the effects of piracy are completley blown out of proportion,
If the developer makes a product that really apeals to the consumer then the consumer will respond very positivley e,g GTA IV , GT5 , Halo 3 etc businesses blame piracy because of a lack of interest in their games (due alot to their games being complete crap) I'm sure piracy affects games sales but I seriously dought it makes games that would otherwise be profitable fail to reach profitability.
My personal opinion is that it's ok to pirate if the person couldn't otherwise purchase the game or seriously wouldn't purchase it either way , in both situations there's no loss to the developer/platform because they can't loose a customer they never had , it's not the same as running into a store and stealing physical property that belongs to some on else I think.
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