UBISOFT can suck my cock. This will never work - pirates always find a way,

yeah, and how are they going to make money?

Simple, by making the legit customers get the crippled product while the pirates the working one.

I think you have lost the point somewere Altergo....  Years ago, I used to get pirated games but at the same time I also used to buy games aswell.  I don't pirate games now, I buy all my games off Steam these days (nearly 100 and still counting).

But these days I hate pirates but at the same time I hate companys that charge way to much for a game.  e.g  Ghostbusters on the PS3 - £45 (you having a laugh).  And the new CoD:MW2 is going to cost alot more just becasue its popular.

1.From in-game advertisments. If I can watch my TV channels for free, it can't be that hard to apply the same business model for games. 

Or even if they would need to reduce the budgets, it wouldn't bother me, the $100 million blockbusters of our days are overrated.

2. From hardware sales. Nintendo could easily support its developers from the tons of money the DS and Wii make. Sony and Microsoft would either have to release cheaper consoles next time, or sell them for more money. Third parties could get their money directly from the console company, for the number of hours their game was used, or whatever. 

I would gladly buy a $600 console if it would mean no later responsibility at all, but loads of free games. I'm poor, and while I had that amount of money once, I instead grabbed the opportunity to buy a gaming PC, because I was afraid of the razor and blades model, afraid of getting tied to a console, and paying the price of the cheap hardware later.

One piracy solution is to only release your games on the PS3.

I wish the X360 and Wii had been not cracked. And I wish next gen consoles no one will be cracked. That way publishers can ignore PC market and piracy will drop to zero, and revenues will be so big that Ubisoft can develop their $100-150 million super epic mega AAA titles.

that razor and blades model seems like it could work out, but even if the console was really expensive I'd think that only the higher quality games would actually receive funding, which would most likely cut the game development  business. Why bother funding for really low-quality games if no one will buy them and it won't lead to higher sales?

I also agree with in-game ads, but this would probably only be able to compensate for the low-budget titles. Hey, wait, if you combine those two models you could actually retain the entire gaming market. Hmmm...

 In game advertising is currently not worth anywhere near enough to cover the whole industry, although projected figures for what it'll be worth in the future are ever increasing it'll never be a viable financial model for this generation.

Source

"depending on which research organization you trust, spending on in-game advertising is supposed to grow to between $732 million and $1.8 billion by 2010, although I personally believe the current economic climate might prevent spending to reach even the more conservative prediction by the end of next year."

 The U.S game industry alone is worth well over $12 billion. In-game advertising will be big bucks but not at the moment.

 Hardware Sales seems like a really silly business model too, simply cause Nintendo / Sony / Microsoft would never commit to it. Whats in it for them? Except a huge risk. It could be viable as a subscription based model where you get all games for free but pay x-amount per month to access and play them, but that involves you spending money so it'll be back to piracy for you.

DRM doesnt stop piracy, it encourages piracy, since the pirate copy is the superior one. Why doesnt the industry realize this?

well, the way Ubi makes it sound (and I really hope for) is that this isn't a traditional DRM scheme, but instead a completely different, better method that won't hurt consumers rights. What could it be? I have no clue, but I'm just hoping that Ubisoft has learned the lessons of the past...