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Your arguments fail.

The rich CEO's etc. are not the only people involved in video game production. They aren't directly hurt by piracy, but some people are. The ones who make a fraction of a penny for each dollar a CEO makes DO get hurt.

If there are financial losses, a company will be more likely to cut the little guy than reduce the executives' salaries.

These companies depend on their income to produce future games. They need income to make good games. Not everyone is EA and has millions of dollars to lose.

Also, consider this: Pirates are generally more likely to pirate games that appeal to them. These are usually hardcore-type games that don't sell as well as casual games. By promoting piracy, you are, in fact, encouraging companies to make games you don't like, because it's more profitable.