There is a lot to be learned from the music industry. Music don't sell like it use to yet everyone and his dog owns a mp3 player.
Why? Piracy.
There is a big difference between PC software piracy and console software piracy where the copyright owner is concerned.
MS or Adobe, for example can cause a business serious problems if caught using illegal software. The truth is far more people use illegal copies of windows than legal ones but millions of companies and businesses rather not take that chance. So although MS "looses" $billions from pirated software there are more than enough big businesses and honest individuals to keep them wealthy.
Console gaming has no big business users to sue, if console pirating gets out of hand I don't see developers or manufacturers chasing after millions of broke ass ten year old kids for compensation... or broke ass grown ups for that matter.
As for those of you arguing about when you own a product you should be able to do what you want, check this out.
I own plenty of CDs and an MP3 player, yet in the UK making a private copy of copyrighted media without the copyright owner's consent is illegal: this includes ripping music from a CD to a computer or digital music player...I mean, how stupid is this?
