Andy Chalk said:
its launch was marred by pre-release piracy [http://www.escapistmagazine.com/news/view/81926-THQ-Creative-Director-Opens-Up-About-Iron-Lore], specifically an undocumented security check that dumped players out of illegal copies of the game. That led to some very negative word-of-mouth about its buggy, unfinished state prior to launch>
Hello? Guys? Anyone else notice that it was stated that there was DRM in Titan quest that made people think it was buggy? So they didn't buy it. Sounds like DRM hurt sales more than pirates.
Honestly, they can blame piracy all they want, and I'm not saying piracy is right, but they will have to deal with it. Valve has already done this with Steam.
Whether or not you like steam is beside the point:
The fact is that it is a service, not a product.
As we become more advanced, the economy moves more towards services. Multiplayer is a service, that's why it keeps getting shoehorned into everything. Manufacturing is cheap, which means that the money is not in making products. Services are not cheap, not easily replicated, so the money is there.
Services aren't like products. I can't get on my computer and start up Bootleg steam servers. Even if I could, it's something that can be easily tracked by authorities.
Jim Sterling has already covered this in his recent Jimquisition episode. Pirates offer a product for free, publishers offer a product for money. People are going to go for the former, because often it doesn't come with DRM!
Pirates can't offer cohesive services, publishers can. They just need to realise that they have to do so to get people to buy their game.
Times are changing, companies need to get with them.