Article by Game Critic's Mike Doolittle:
"There's little disputing that piracy is a serious problem on the PC. It's also a problem for consoles, but it's certainly more prevalent on the PC. Unfortunately though, there's no real solid data to give us a clear picture just how big of a financial impact piracy really has. A study in 2004 found that music piracy, long blamed by the music industry for a decline in CD sales, was mostly unrelated to the decline. It's difficult to say whether this holds true for the PC as well; most piracy happens in Asia and Eastern Europe, so it's unclear whether game makers are really losing customers to piracy en masse.
But whether or not piracy is actually harming companies' bottom lines, it's clearly having a strong effect on their perception of the viability of the PC market. It's not unlike a bear market, where anxiety over stock viability creates a buying freeze. In other words, developers like Epic, Ubisoft, Capcom and id may be creating a self-fulfilling prophecy by relegated the PC to a second-class market."