Dejitaru Ryuu wrote...
1 - Creating a game costs money (production, developing, paying the workers, comercials)
2 - They sell their product to gain back the expenses plus profit.
3 - if pirated they loose income
4 - Loss of income means less money to reasearch future games and keeping the company running
5 - to gain more income the prices raise
6 - The prices raise, people want to buy less and pirate more
7 - Repeat from step 3
This is the actuall problem really. if pirating didn't excist then I'm positive that all games would cost half of what they are now.
While I am not necessarily for piracy, your last statement isn't quite true. Games have always been pretty expensive.
I can't find a lot of sources (can't really use my memory as a source, especially since I don't remember the exact prices of games ten years ago), but I did find this:
http://www.islandnet.com/~kpolsson/vidgame/vid1994.htm
"Playmates releases the Earthworm Jim video game for the Super NES in the USA. Price is US$69.99. [724.102] [1161.80]"
http://www.islandnet.com/~kpolsson/vidgame/vid1995.htm
"Konami releases the Metal Warriors video game for the Super NES for US$59.99 to US$69.99. [488.140] [972.94]"
1994 and 1995, long before game piracy became prevalent, and games for the SNES cost the same as they do now. Which actually seems wrong, since it's been so long.
Anyways, the point is, games are expensive, and if there was no piracy, they'd still be expensive. And it's not like piracy is continuously draining millions from each company. People still buy games, even if they do pirate some.