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As for piracy? The PC Game industry has been struggling with this since the 80s. Their solution? Well for one, don't piss off the consumer. Back in the early 90s they basically had an ad campaign saying 'hey, if you rip off our games, we'll stop making them' and, for the most part, it seemed to work. Kids liked the games, but felt they had a responsibility to fork over the cash. Tie that in with how PC games began considering how to better protect their software without creating security holes on the consumers' computers, and you have a winning strategy. Civ IV, which was a hugely expensive and hugely anticipated game with little internet play still broke records on sales through a mix of simple piracy protections and just the expectation that people will be honest.
Contrast this with the RIAA - they openly admit their artists get around 5-10% per sale, they dug their heels in trying to resist technology and then made their product a pain to use, plus they sued little old ladies. The result? People actively take PRIDE in ripping off the RIAA. iTunes is a huge blessing to the RIAA, and it took them a year to realize it, but they're still swimming upstream.
No, the video game industry is doing well. As was pointed out, MMORPGs are breaking records all over the place. Games like GTA IV (which is also PC, and based off of a PC-only line) are also breaking records for sales, and both customers and producers are happy.
If I am ever tempted to pirate games, it is when the publishers feel the need to make them more difficult to get and play - offer them only in stores, bundle them with highly invasive DRM schemes, and offer no support after purchase in the form of patches.
Short answer: If pirates are offering a more convenient, secure, and friendly buying experience than you are, the problem isn't pirates, it is your business model.
but to play CS online is even better