Thanks for that explanation, so basically everyone loses out?

The publishers/distributors end up not being able to release their games, stores don't stock the game to sell so they lose out on profits and the gamer loses out by not being able to purchase the game! End result, game development studios close due to failure to market their products, stores have to make cut backs by releasing staff and closing stores to reduce overheads, the video game market ends up being dominated by a few massive companies and gamers stop buying games because they become way too expensive due to the huge overheads involved in actually creating a single game!

Isn't that a nice future to look forward to? All because too many companies are simply too greedy to realise that their "business" practices are the very thing that's slowly killing the industry!