Not just that; piracy often has the effect of making people interested in something, and causes them to buy the real thing, or sequel. Additionaly, there are many people who only buy a system once it's been hacked. So as long as the hardware isn't sold at a loss, companies profit from this. And even if they pirate most of their games, they do buy an occasional title.
Something to ponder: Software sales haven't dropped at all since PS3 was jailbroken 7 months ago. On the contrary. Hard- and software sales have increased. Please explain this.
"Well certainly with the Xbox 360, we had some challenges at the launch. Once we identified that we took control of it. We wanted to do it right by our customers. Our customers are very important to us." -Larry "Major Nelson" Hryb (10/2013). Note: RRoD was fixed with the Jasper-revision 3 years after the launch of 360
"People don't pay attention to a lot of the details."-Yusuf Mehdi explaining why Xbone DRM scheme would succeed
"Fortunately we have a product for people who aren't able to get some form of connectivity; it's called Xbox 360,”-Don Mattrick
"The region locking of the 3DS wasn't done for profits on games"-MDMAlliance
