I think we have established that piracy moves consoles. This only really benefits nintendo though because they are the only ones who make money off of each console. Not to mention Nintendo has a wide demographic many of which believe piracy is wrong or oblivious to its existance. So software can still do well despite it. Sony loses money off of each purchase so piracy wouldn't help it.
The DS may be easier to hack but the PSP has become more associated with it. My friends haven't bought a PSP game in a long time. Yet they are fully enjoying games on it. Now they at least have the decency to buy the american version of Dissidia when it comes out, but I am sure there are tons of games that they have that they will probably never buy. I am sure there are many games that if they couldn't download they still wouldn't buy, but I am also sure that there would be some games that they would fork over money for.
It is sad to hear about people using flashcarts and storing games on SD cards. I know there are people that wouldn't buy the games anyway. However, there are people that would but when they find a free version, they would rather have that.
The video game industry doesn't have concerts or movies to make money off of like the other industries. They rely solely on property sales.
Losses may be exaggerated but the losses are still there.
I am never going to buy a dodge viper. So I should just go to a dealership and hot wire one. I am not taking anything from them because I had no intention of purchasing in the first place. I know intellectual property is different but that is what is seems like at times.
95% of gamers don't know they are noobs, the 5% who do won't be noobs for long
Check out my kickstarter project: http://kck.st/15CEuUT
Check out my blog: http://www.metropolisgaming.com
