Yeah, they're making the games for consoles and making a lot of money. That's the thing about the gaming industry - it includes the consoles where piracy ain't nearly the problem it is for the PC. Who's making a lot of money in the PC realms? The only one that springs to mind is blizzard, and that's from their unpiratable MMO. You know, the one where they're establishing the legality of EULAs in the court system with?
I've heard the 'they wouldn't have bought it anyway, so it doesn't count' argument before, and it was convincing until I actually sat back and thought about the economics of it. Bobby pirates a $60 game - oh, he wouldn't have bought it for $60. But would he have bought it at $30? The world will never know. More to the point, because he's pirated a game, his desire for entertainment is fulfilled. That's reducing demand across the industry - cause lets be honest, since he's got a stolen $60 game, he ain't exactly running to the store to buy another game, at any price. The man who steals a coke - whether or not he would've bought that coke - still ain't buying pepsi, or rc cola, or bargain basement soda, or water.
Find me a piracy apologist who who actually takes this arguement through the steps of an actual economic analysis, and I'll listen to it again. Until then, it's in the same group as republicans talking about tax cuts being good, and democrats saying tax cuts are bad - pure rhetoric.