I don't know if this has been mentioned but:
Good games will make more money than crappy games.
Not true.
Example: Mario Party DS is the second highest selling game this year in Japan
Also: Disgaea is an amazing series, regarded by many as some of the best SRPGs out there. The games in the series don't sell much more than 60-80k worldwide. Is that because they suck?
Again: STALKER didn't sell very well either, even though it was very well received.
Simply because no one wants to buy crap for $50 and get screwed. people pirate because they want to experience the game play and then buy. If they like the game they will buy it, if it sucks they will not. Again, good games make more money than crappy games. Crappy developers can go make console games...and I hope it stays this way!
Most of my friends pirate all their PC games and don't buy a single game outside of online-enabled titles.
Example: Dreamfall was played by many of my friends, yet I was the only one who bought it and the prequel. Same goes to STALKER and Oblivion.