I have paid for every piece of software I own. I do this to make up for ‘morally casual’ people who steal software.
One of the main reasons why games cost so much is piracy. Developers have to take into account the fact that if a game is popular, about half (sometimes more) of the people who get the game will not be paying for it. Games are very expensive to produce, some have teams of dozens of well-paid programmers working on them for years. If they can’t make back their money, they will have to cut back on their expenses on the next one - the result? More and more cheaply produced or unfinished games on the market.
To give you an idea how big of an impact piracy has on game sales, look at F-15 Strike Eagle and Dungeon Master. Both of these games were immensely popular in the mid-80s. F-15 sold something like 500,000 copies, which was really exceptional at the time. Dungeon Master sold three times as many copies. Why?
Dungeon Master used new compression algorithms on their disks that made them virtually impossible to copy. It was several months before a crack was made, and until then if you wanted Dungeon Master, you paid for it.
Look at the sales figures for Myst. Not that great a game, only appealed to a certain market, yet it set new records, for a long time it was the best selling PC game, ever. Why? At the time, CD burners were not available to the general public, and due to the vast (at the time bigger than most people’s hard drives) size of the game, you needed the CD to play.
Look at Starcraft. It STILL occasionally makes it into the top ten games, sales-wise. Yes, you can pirate it - but you can’t play it against other people on battle.net without the CD key. Same thing with Diablo and Diablo 2.
One of the reasons there are so many MMORPGs ala Everquest and Asheron’s Call coming out soon is they are immune to software piracy - you have to pay a small monthly fee to play the game on the maker’s servers. Everquest sold a LOT of copies when it was new.
I believe that developers will find a way to cut down on software piracy, and we will probably see a new renaissance in gaming as it becomes much more profitable. Until then, I will pay for all my games and deride people who don’t.