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The Ugliness of Privacy Notices
Easy access to mod chips would mean that game companies would be less likely to invest in story and detail that makes a game valuable in single-player mode, and just concentrate on MMORGs where they can make money from subscriptions.
It's not necessarily the technical quality of the game that the DMCA encourages, but all the offline-usable art and story detail.
Naturally the DMCA discourages many other investments, and many of those might have been more valuable or useful to more people. It's interesting and rare to see a content creation investment that the DMCA promotes.