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But piracy is helping to sell consoles a lot too and makes for some people a console more attractive.
The PS2 had probably the biggest advantage ever and i think the PS3 would have had more success if it would have been so easy to hack like the other consoles were.

There is a reason why Microsoft is doing a big banwave "everytime" a new Halo or CoD is getting released.
Lets say there are 800k pirated units of Halo/CoD - 500k of them are so retarded and go with their pirated game and hacked consoles online.They will get banned and those people directly buy a new one cause they know till next year they are safe.
You waste around 250$ every year and get a lot of games for free every year - They think like that and do that.