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In countries as mine (Argentina), if it wasn't because of piracy people wouldn't be able to play games.
Back in the day of the N64, I payed 120 dollars avarage per game.
My Wii costed 700 dollars and I was fotunate enough to get my PS3 Slim in Japan, because you can only get one here for more than 550 dollars.
Not only that: the average salary in my country is between 500 and 700 dollars, so, guess what.
Wii, XBOX 360 and PS3 games are around $80 but sometimes even more.
Translation: though there is a huge demand for gaming, people cannot afford those huge prices. Therefore, piracy is huge.