This sounds more like a cop out than anything. We can't put out decent games or support our products properly, so we're gonna shift the blame to Piracy. They move to consoles because for the most part, there are no patches for console games. Thats changed slightly with the xbox360 and PS3.
Price is a huge reason. As long as you're going to charge $60+ for mediocre games, people will pirate them. How many people do you think have pirated the Valve Orange box, considering you get basically 5 decent games for around $40 depending on where you buy it? Look at the Sims 2 game, and all the regular content expansion it still gets. I mean I bet people have pirated the game, but obviously EA is still making money on it. But most of the things I'm listing are games that are fun to play, and have good replay value. Not to mention they take more than just a few hours to beat. Even Mass Effect has it's problems, but it's still a worthwhile purchase.
What I love, is when I have to download a pirated version of Software I already own, because some how while sitting in the case not being used the discs manage to get scratched or part of the reflective film flakes off the back making the disc unreadable. Perfect examples of that are my CivIV install/Play disc, and my Civ3 complete install disc. Yet my older games like Baldur's gate 1 and 2 and diablo 2 can be used the hell out of a little scratched after almost 10 years, and still boot up just fine and be fun to play as a bonus.