Piracy is a form of theft you are stealing their intellectual property even if you are not stealing a physical copy of the disc. Now as for causes of it is something else entirely. The prices they charge in many cases and in many places are outrageous. When I was in Israel I saw Ratchet and Clank Future Quest for Booty in disc form for what would be the equivalent of $100 yet it's on the PSN in the US for $15. This is one clear example of a game being way over priced since its not a full game just a short one yet in Israel they would be paying the same price as they would for regular for games which is still $40 more than games are in the US