Another point I forgot to mention...
Not just popular avenues for console games such as EB or Game Crazy but also Ebay and whatnot. These all hurt game sales, but is it piracy?
Once again, by the industries definition, it is. Legally however, it is not. When you buy a 360 game for example, no matter what a EULA might say, you own it and you are free to sell it or give it away as you wish.
Why buy a game at full price new when you can get it used and enjoy ALL the benefits of an unopened copy? Used console games do not have multiplayer play tied to CD keys, there are not CD keys in fact. Also, some game stores will let you try used and even brand new games there in the store before you buy, much like some CD stores let you sample the music in store.
Once again PC gamers are villanized while two very large (I would daresay combined are larger than piracy) contributers of "lost sales" go unnoticed, primarily I suppose, because game rental and game stores that resell games are such huge customers to the industry.
Looking on the back of a 360 game, I found this..."Unauthorized copying, reverse engineering, transmission, PUBLIC PERFORMANCE, RENTAL, pay for play, or circumvention of copy protection is strictly prohibited."
Public Performance??? How many times have you gone into a game store to see a full retail game up and running on one of their consoles?
Rental? Sure...I read this line on every one of my 360 titles, and I have seen ALL of them on the shelves of Blockbuster, Family Video, and some other video chain. So it's prohibited but not enforced huh?
I guess its easier to put the blame on faceless consumers than your largest consumers, much like the embarrasment that Microsoft faced when they found the largest pirates of their OS systems were PC mfgs like Dell, Gateway, etc.