Something about all the requests from pirate copies essentially ddosing the servers since they didn't have authentication in place.
No, in the case of Demigod they just had terrible networking code and tried a bunch of different excuses until they finally admitted it. Sure piracy happens but it is a bit much to generalize that all titles get pirated in such a large ratio and it's especially galling to do it without citing the financials of successful PC ventures to put it in context.
Playing: Ys VIII, Hades, Demons Souls
Watching: The Expanse, Tenet, Peninsula