B.S. Gaming is evolving now to the online multiplayer format. This is the only format that can stop pirating due to online checks and update restrictions. That's great for some game developers, those who do nothing but massive multiplayer games, but for "alternative" developers that don't want to release the same hack and slash MMOG but want to give the gamer a mental challenge done in an unique way like Portal, it's over. Portal did well because it was free, but you can't make a living off of free. Just think how long you could survive if you weren't allowed to make money from your work.
Pirating is difficult on consoles, that's why they're flourishing. Make no mistake this is the main reason. Is it so hard for people to understand that a company needs to make money in order to pay its staff and overhead? Why bother doing hard work if it's just going to be stolen from you? I'd focus on stuff where I could sell it, and if what I make sucks, then no one will buy it and I'll go out of business. But it's unfair for me to make something really good and have these myopic, self aggrandizing, apologist thieves take my just reward.
Amazing how many people still can't see this. The PC gaming industry will continue to die a slow death thanks to piracy. Idiots will blame this on the "stagnation" and lack of good ideas in the PC gaming world, but smarter folks will realize that it didn't pay to be innovative so no one bothered to put in hard work and talent into the PC arena.
I played the Wii recently and that is a groundbreaking, innovative and awesome platform. The new stuff coming out for that in the future should be awesome, but why haven't we seen something like that for PC yet? Someone could easily copy the idea of the Wii and release hardware and software for the PC. The hardware people would do this, but you need software games to drive hardware and that's where it all ends. Why bother? Pirates will just steal all the software. If I'm a CEO, I say no way, don't waste our resources to make a Wii like game for the PC, the thieves will descend like vultures and we'll end up losing money.
Again, we have the pirates to thank.