A) a lot of people who do pirate in console are current customers. They spend quite a bit of money to get access to "every game ever" and stop buying new games. B) a lot of other ones hack the console in order to play hacked copies of the game in multiplayer, which ruins the experience for paying customers.

> Those who "pirate" will never convert to paid customers

That's not true. Many people won’t pay for something if they can get it for free reasonably easy.