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dsoverpsp said:
well....each download represents each copy of the game that COULD have been bought - thus decreasing SW sales

Except could doesn't equal would.

I mean if you had a PS3 and someone said "You can have Lair for free and it was a legitamite copy of the game would you say no? Or would you say "Well I didn't want to buy that anyway but hey the game is free, so it's not like i'd be supporting the game, and maybe i'll get some kind of enjoyment out of it."

Furthermore say you hate Japanese RPGs... yet someone said "Hey do you want FF13" are you going to say no? Or are you going to say "Sure i'll give it a shot."

Now say you suddenly enjoy FF13, it completly changes your view on it, and suddenly you become a big FF13 fan. Don't you think you'd likely buy the game to support the company rather then just pirate it?

Lots of people want to support the studios and games they like. Look at artists expirmenting with the "Pay whatever you want" method of digital downloads.

Believe it or not... a lot of pirates actually are the same people.  Most people are this way.  Most people actually want to pay for something rather then just steal it believe it or not.