I doubt its piracy. I just think people never bought the system with the intention of actually playing games on it. I've seen people use it for porn and for music and sometimes portable movies (illegal kind of movies) and thats it. Now that there are better devices out there like the iPhone/Touch and the Apple competitors the sales are drying up. All those new games that Sony announced won't do anything for the system because most people never bought it to play games. I consider the PSP as more of an iTouch competitor than a DS competitor.
Tease.