I think this is most of the story.
I mean, it's fun to hack, but a lot of people's ideology about a lot of things go out the window as soon as they have a regular job and can afford to buy regular stuff and see these things as pretty much regular products and services.
Future generations of consoles made that default behavior, and games are released in multiple continents at the same time with their respective localization. American flagship games are now more appealing and engaging than their Japanese counterparts.
Its not just the money.
It's still fun to hack, by the way, I just have less time to do it.
In fact, if they're smart, they'll be fine with it, because it's a form of 'perfect price discrimination'.
That said, the question is to what extent piracy from other areas bleeds into the higher value markets. Which I believe does happens, ergo 'a crack is a crack is a crack' probably.
It's funny because if the cost of getting a 'hack' of a game literally entails buying a 'CD-ROM' and going through the pain of copying it like in the 'old days', which is a small pain but more than many want to bear, it puts a natural bound on the copying/hacking: it will happen a lot in poor countries, less so in rich countries.
But if a hack is 'discovered once', wherever, and then easily exploited everywhere ... not so good.
(Also xbox sales are often very good. I'm ok paying $10-20 (sometimes less!) for games).
I suppose it helps that my backlog is 6 years now; up until last week I was still playing games on 360/ps3.
games seems to loose value rapidly after they are released so some are very affordable.
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But I can say that I became disinterested in piracy when they made getting games more convenient than piracy. When they made using the hardware closer to its full potential part of the default experience. When they got the pricing right for these “premium” but pretty basic features. And of course, personally having the disposable income to afford the content because I would have never been a customer when I was pirating, only an unpaid evangelist of the franchise.