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There certainly are people that don't buy games that would if they couldn't pirate them. But its not as bad as the industry says, because some people pirate and still buys games and some people wouldn't buy any at all unless they could pirate.

That doesn't mean what they're doing isn't illegal and unethical. So pirates get no sympathy from me. Used game sales at least help subsidise the stores that sell legitimate games and help to employ people who then inject their pay back into the economy and are taxed.