well, downloading pirated games does effect anyone who does buy the legit game instead if you believe that there is a percentage of people who would've bought the game if piracy weren't an option. the game developers must sell the games at a higher price to negate the profit lost from copies they would've sold without pirates.
the most serious problem with piracy is this: small developers who go out on a limb and produce a good game may have their entire business banking on that single product. if game piracy suppresses their sales volume enough, they will not have the funds to bankroll their next project and/or will get screwed by game publishers without the leverage their previous sales would've given them.
i won't say that i'm blameless or that there aren't neutral/positive things about downloading games... but its hard to argue it doesn't hurt the little independent developer with an innovative game idea.
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If you will not fight when your victory will be sure and not too costly, you may come to the moment when you will have to fight with all the odds against you and only a precarious chance for survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves.
~ Winston Churchill
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