Nintendo did do something to stop pirating. They cut the legs off the chip you solder a modchip onto. This means those that try need more skill involved to attempt it. These kinds of measures are the best kinds for a hard mod. The 360 will kick you offline if you go online and their check catches you. I'm not sure what the PS3 does, but I'm sure they'll work something out. You can't stop piracy, but you can make it more difficult for those willing to try it. Piracy doesn't kill consoles so it's more of a minor problem than a major one. The two most successful consoles ever were the easiest to mod, minus the Dreamcast of course, but that's a whole different story.

 Uh, no. You're completely wrong. You use a LG drive and RawDump to dump the iso to your pc, then you burn the iso to a DVD and it spins and reads. 

You burn the disc, you put it in, the chip reads it, it works. No "second work-around" and no cables. You're wrong.