Welcome to the economics of scarcity guys. It happens with every form of digital media.
If I wanted to reproduce the data or coding on the CD or DVD of a game, movie or film, or the downloaded data of same, I can do so for as much as my storage can fit in. The other day I bought a 5MB music track off Amazon's mp3 store for 69p. I could reproduce that same music track on my 500GB hard drive just under one hundred thousand times, at negligible cost to myself. I could distribute it on the Internet, through various means, just as easily, again at negligible cost to myself. Let me make it clear that I DON'T do this, I'm just pointing out how easy it would be.
Since I can reproduce a piece of data - which is all a game, film or music track is - an infinite amount of times at basically zero cost, it follows that the game, film or music track has zero inherent value. Therefore, the record, game and film companies can't sell it to me as a purchase. Instead they sell a "licence to play" the record, game or film.
As an individual I have no incentive to not reproduce something and distribute it to everybody I know, so the big companies put obstacles in my way to stop me from doing it.
The first obstacle is technical - DRM. (Please note that Amazon's music tracks do not have DRM attached, and yet the Amazon mp3 store is still very much in business and doing well.) I think we can all agree what a colossal folly most forms of this are, but it's not a new invention. Ever tried to play an American DVD on a British DVD player, for example? Now try and buy a DVD player with no region-coding and see how far you get. There is no reason for this - it doesn't prevent piracy - all it does is p-ss off people like me who regularly order stuff from overseas.
The second obstacle is even more simple. If you are caught "stealing" music tracks, games or films, you can be prosecuted, because you have broken the "licence". Cases like Jammie Thomas, for example, are meant to act as a deterrant to file-sharing. Of course this doesn't work either, because hardly anybody believes they'll get caught until they actually are. There's a massive potential for abuse of prosecution in this case, and many documented cases of this happening.
So a lot of people make a lot of money that essentially relies on a business model that involves selling deliberately crippled goods, with the intention of suing their customers if those customers knowingly de-cripple them or use them in ways the business in question hadn't intended. So that must mean all digital media suppliers are evil, right? WRONG.
The fact is that although I would never defend some of the more preposterous measures that these companies have taken, their job is to distribute media in such a way that makes them, and the media's creators etc, a profit. (And yes, I know there are plenty of abuses here as well - the amount some people are paid for their creations by the distributors is ridiculously low - but bear with me.) The problem is that with so many ways to get the media for free nowadays, the individual has less and less of an incentive to actually pay money for the data. But if nobody pays money for it, there's no incentive for creators to MAKE it. Right? Again, wrong!
The fact is, the price and complexity of making movies, games and music has gone down so dramatically over the past twenty years or so that there is far MORE media out there, not less. It's got to be so much that there are search engines like IMDB dedicated to finding the correct media that people are looking for. Look at the flash game popularity explosion, etc.
And along with these new tools for creating media, you've got a whole host of new ways to distribute and pay for them. Games feature advertisements, as does the likes of video hosting site YouTube. (And yeah, I hate obtrusive "in-game" advertisements as much as anybody, but there are certain advantages for a company to be funded that way as long as they're not so obtrusive that they annoy that company's customers.) Bands sell memorabilia and concert tickets.
So what needs to happen? The big distributing companies need to adjust their business models, or become obsolete. It's that simple. They can't keep relying on an outdated recording industry model that relies upon DRM and the threat of lawsuits to keep working.