> Switch piracy is very limited, but they pursue it aggressively because of the losses it causes them? Besides, that's already bunk; every time someone actually puts together a study it turns out that piracy is good for sales.

They don't lose much because some difficulty is maintained by them pursuing it aggressively.

Once piracy become as easy or easier as buying the games, yes it becomes a problem for them.

The same way Napster became a problem at some point for the music industry. Before Napster, getting music for free was about copy cds or cassette tapes from friends or library, a rather slow and limited process, or wait for the tunes to pass in the radio and hit the record button quickly to record it in a cassette at a lower quality than CD. And you didn't have the full deal (with cover and lyrics and stuffs that mattered at the time). When it became easier to just look for music in Napster's builtin search engine and start playing it even before the tune was downloaded completely it became a huge problem as it was a much seamless process than both the original illegal and the legal way which involved either to go to a store and hope the right disc was available or go to one of the very few music online music shop available at the time, enter your credit card details (something very few people were still comfortable with) and wait for the disc to be delivered. I think there were already a few digital marketplace available but you usually had to wait for the full download to be completed, the UI wasn't as easy and you couldn't just browse another user shared library to discover new stuff and get suggestions.