Most of us computer-savvy folks already know that any software-based mechanism for protecting games simply doesn't work. Every time they make it difficult to copy that floppy or require server activation, it's just a matter of time until somebody out there on the wild, untamed Internet introduces a "cracked" copy that completely circumvents the method used to protect it. In the end, the only people who are truly impacted by these "copy-protection" methods are legitimate buyers of the game.
So the question I have is not, "Do effective anti-piracy measures exist?" We know the answer to that: They don't. The question I have is, "Can effective anti-piracy measures exist?" Will somebody come up with something that actually works, or is piracy a perpetually unsolvable arms race.
One idea I came up with is this: Completely isolate software in inaccessible hardware. Lets say every time you wanted to play a game, you had to plug in a USB stick that contained the game. The USB stick contains a unique, inaccessible interface that decrypts the software piecemeal using a unique PGP-style key, never allowing the entire entire application to be exposed at once. Use a good enough key, and it may take months or years to get the game out of the USB device. However, given the nature of the question being solved, even this may simply be another problem that someone devises a means to solve, perhaps by hacking the involved device drivers.
So the question I have is not, "Do effective anti-piracy measures exist?" We know the answer to that: They don't. The question I have is, "Can effective anti-piracy measures exist?" Will somebody come up with something that actually works, or is piracy a perpetually unsolvable arms race.
One idea I came up with is this: Completely isolate software in inaccessible hardware. Lets say every time you wanted to play a game, you had to plug in a USB stick that contained the game. The USB stick contains a unique, inaccessible interface that decrypts the software piecemeal using a unique PGP-style key, never allowing the entire entire application to be exposed at once. Use a good enough key, and it may take months or years to get the game out of the USB device. However, given the nature of the question being solved, even this may simply be another problem that someone devises a means to solve, perhaps by hacking the involved device drivers.