Belladonnah said:
First off, out of those 1000$, the artist would have only got 100~400$. Second, 10$ saved by a costumer from buying A, will often be used to buy B, specially when B is better than A, making the artist who made B gain from piracy on A.
Going back to gaming, fact is, good products get sold. You might look at a 200k Half Life 2 piracy number, but when you divide the number of copies sold by that, you get a lower factor than say, Spore, a much crappier game. Developer's should stop worrying about piracy and DRM, and start worrying about delivering the best gaming experience possible, and they WON'T lose money.
Do you think Blizzard employee's worry about piracy in Starcraft 2, or Valve employee's about piracy in Portal 2?
No, they just swim in their pile of money on the morning, and go on making excellent masterpieces of gaming in the afternoon.
The same thing applies to artists and movie studios.
Here's an idea, if the games/movies/songs you're pirating are such crap, then how about you just don't worry about playing/seeing/listening to them? Just because something is bad doesn't mean that people have a right to get it for free.
Also, the artist would have only gotten $100-400, but what about the jobs of the people working in all of the places that sell them? I've had a good amount of stores going out of business that focus on selling music and movies. I'm not saying pirating was the main reason for it, but it sure as hell didn't help. Even if the store would only make $200 per CD, if they're selling 100 different CDs at a time, that's $20,000 they've lost as a company. While that isn't a huge impact on them, that's likely worth letting off a few people, who now are unemployed.
You're point that the person would buy B instead of A is flawed as well, because who said they'll use it for the same kind of thing? What's to stop them from downloading more and just spending their money on other things entirely? Just because you're taking away from one does not mean you're giving to the other.
And that 'pile of money' that the companies are swimming on? Most games have around 2-4 year development time, with a decent number of people working on that game at the time. They have to pay all of their employees over the development of the game, as well as upkeep and other things to do with the company. Even when they sell the game, most companies have to share a lot of the money with the distributes, which lowers their profits even more. I doubt any of those companies are really swimming in money, or at least the ones purely focused on game development.
My point is, making these things normally isn't cheap. I've seen points in the CD argument that the record companies are the ones losing the profits, but they normally pay the artist when they record as well as a cut of the gross profit. All companies face a huge cost when producing things like movies and games, and those keep a lot of people employed. While a few people pirating wouldn't hurt the industry, it's becoming so easy that it really is cause a dent.