And that reasoning would work fine for essentials like food and medicine etc. Computer games, however, are a luxury item. You don't need computer games. So if you can't afford them, you don't get them, simple as that.
Why does it bother you that someone can get something for free without doing any harm to anyone or their property ? (remember, we're talking about people who can't afford games anyway). A lot of people benefit from piracy. One of them is Bill Gates (and Microsoft in general)
Gates shed some light on his own hard-nosed business philosophy. "Although about 3 million computers get sold every year in China, but people don't pay for the software," he said. "Someday they will, though. As long as they are going to steal it, we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade."
http://news.cnet.com/2100-1023-212942.html
And he's not the only microsoftie with this view.
"If they're going to pirate somebody, we want it to be us rather than somebody else"
"We understand that in the long run the fundamental asset is the installed base of people who are using our products"
"What you hope to do over time is convert them to licensing the software."
http://arstechnica.com/microsoft/news/2007/03/microsoft-executive-pirating-software-choose-microsoft.ars
Long story short, Microsoft is able to compete with Linux and extend monopoly in China thanks to piracy. And it seems to have payed off. This time Microsoft is pirating Vista 7:
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9132389
In the end, people who don't embrace piracy will end up frozen in amber as an example of 20th century economy. Everyone else should consider alternative business models, such as this:
The new business model is a real-world test of an essay published by Wired magazine founder and technologist Kevin Kelly entitled "1,000 True Fans." Mr. Kelly argues that artists could make a living with a small group of dedicated individuals who would fund their work. "A True Fan is defined as someone who will purchase anything and everything you produce. They will drive 200 miles to see you sing. They bookmark the eBay page where your out-of-print editions show up. They can't wait till you issue your next work," he wrote. Mr. Kelly argued that such rabid devotees would create outsourced version of the patronage system that's funded artists for centuries.
http://online.wsj.com/article/SB124094416078864595.html