You should really, really, really read this :
http://www.quartertothree.com/game-talk/showthread.php?t=42663It's about the development and the release of Titan Quest.
I quote the (to me) most embarassing part of it (highlighted letters by me) :
One, there are other costs to piracy than just lost sales. For example, with TQ, the game was pirated and released on the nets before it hit stores. It was a fairly quick-and-dirty crack job, and in fact, it missed a lot of the copy-protection that was in the game. One of the copy-protection routines was keyed off the quest system, for example. You could start the game just fine, but when the quest triggered, it would do a security check, and dump you out if you had a pirated copy. There was another one in the streaming routine. So, it's a couple of days before release, and I start seeing people on the forums complaining about how buggy the game is, how it crashes all the time. A lot of people are talking about how it crashes right when you come out of the first cave. Yeah, that's right. There was a security check there.
So, before the game even comes out, we've got people bad-mouthing it because their pirated copies crash, even though a legitimate copy won't. We took a lot of [nocando] on this, completely undeserved mind you. How many people decided to pick up the pirated version because it had this reputation and they didn't want to risk buying something that didn't work? Talk about your self-fulfilling prophecy.
One guy went so far as to say he'd bought the retail game and it was having the exact same crashes, so it must be the game itself. This was one of the most vocal detractors, and we got into it a little bit. He swore up and down that he'd done everything above-board, installed it on a clean machine, updated everything, still getting the same crashes. It was our fault, we were stupid, our programmers didn't know how to make games - some other guy asked "do they code with their feet?". About a week later, he realized that he'd forgotten to re-install his BIOS update after he wiped the machine. He fixed that, all his crashes went away. At least he was man enough to admit it.
So - that's a REAL lesson on piracy ! And one that had a DIRECT impact on the closure of Iron Lore (makers of Titan Quest) !