From a purely pragmatic standpoint, I would say piracy is the bigger issue. DRM was created to respond to piracy. In other words, if there was no piracy, developers wouldn't use DRM. Eliminating piracy could eliminate both, so it's the biggest issue.
I've also seen a lot of comments saying things to the effect that piracy allows a "try before you buy" situation, and that lots of pirates will buy their favorite releases.
First, I was a little pirate in my youth. Coming from a low to middle-class background, I really didn't have access to any funds to spend in large quantities on any game, music, or book (mostly rpg in nature) that I wanted or was interested in. However, never in my life have I re-purchased content that I've gotten through shady means. No matter how much I loved the particular media item. So, as a whole, I disagree with this logic.
Second, are we forgetting about demos? Almost every game that I've looked at for purchase had a demo available. You can download them from Steam, if you don't like the idea of hunting through different websites or looking for physical CD demos. If you want to try before you buy, get the demo. It's still free, you'll still get an impression of how the game plays, and you won't be breaking any laws.
Lastly, if you want to get a better impression about how a game plays beyond the demo, go out and get some friends. And, nothing against online friends, but these friends should be people that you have actual physical interaction with (ie - live in your area). I have so many friends and acquaintances who are gamers, it's really easy for me to get my hands on a playable version of almost any game that's been released this year. Each of them have their own tastes, which means a broad variety to choose from. I didn't really want to buy Starcraft II, but wanted to see what the hype was about. Good news, my roommate loves the Starcraft franchise, so I played his copy. Before BioShock was moved to the PS3, I wanted to see what it was like. Again, one of my friends invited me over to play it on his system for an afternoon. Of course, this is a two-way street and I've had to reciprocate by having nights where my friends come over to get drunk and play Little Big Planet (for a while I was one of the few PS3 owners in my circle of friends). Using this methodology, not only do you get access to games you may not want to purchase outright, but there's an added side benefit of making friends.
In summation, I don't want to come off as on a high horse about piracy. As I stated above, in my youth I did a bit of it. But, using the avenues I talked about, I've weened myself off of my reliance on pirating media to the point where I haven't done it in a few years. At the end of the day, piracy is stealing. If the manufacturer wanted to give their property away for free, they would provide an avenue for it (the internet's been really good about that for unknown producers to get exposure). Piracy doesn't only hurt the developer and publisher by not giving them the funds in the first place, but hurts gamers in general. The reason is that big losses (theft in this case) lead to the necessity for loss prevention. Both the losses and attempted prevention of them drive the cost of making a product up. You complain about games being too expensive? Pirating is only expanding the problem. The more piracy is allowed to thrive, the less likely we'll be able to see reasonable prices in the retail market for people who want to purchase the game legally. Alternatively, the prices may remain the same, but the funds can be allocated to an aspect of the company that's going to improve the process, resulting in better gaming experiences. I'm not saying that money is needed to make a good game. But, companies with more funds will be more likely to use those funds polishing existing systems and probably will take more chances with ambitious products.
I've also seen a lot of comments saying things to the effect that piracy allows a "try before you buy" situation, and that lots of pirates will buy their favorite releases.
First, I was a little pirate in my youth. Coming from a low to middle-class background, I really didn't have access to any funds to spend in large quantities on any game, music, or book (mostly rpg in nature) that I wanted or was interested in. However, never in my life have I re-purchased content that I've gotten through shady means. No matter how much I loved the particular media item. So, as a whole, I disagree with this logic.
Second, are we forgetting about demos? Almost every game that I've looked at for purchase had a demo available. You can download them from Steam, if you don't like the idea of hunting through different websites or looking for physical CD demos. If you want to try before you buy, get the demo. It's still free, you'll still get an impression of how the game plays, and you won't be breaking any laws.
Lastly, if you want to get a better impression about how a game plays beyond the demo, go out and get some friends. And, nothing against online friends, but these friends should be people that you have actual physical interaction with (ie - live in your area). I have so many friends and acquaintances who are gamers, it's really easy for me to get my hands on a playable version of almost any game that's been released this year. Each of them have their own tastes, which means a broad variety to choose from. I didn't really want to buy Starcraft II, but wanted to see what the hype was about. Good news, my roommate loves the Starcraft franchise, so I played his copy. Before BioShock was moved to the PS3, I wanted to see what it was like. Again, one of my friends invited me over to play it on his system for an afternoon. Of course, this is a two-way street and I've had to reciprocate by having nights where my friends come over to get drunk and play Little Big Planet (for a while I was one of the few PS3 owners in my circle of friends). Using this methodology, not only do you get access to games you may not want to purchase outright, but there's an added side benefit of making friends.
In summation, I don't want to come off as on a high horse about piracy. As I stated above, in my youth I did a bit of it. But, using the avenues I talked about, I've weened myself off of my reliance on pirating media to the point where I haven't done it in a few years. At the end of the day, piracy is stealing. If the manufacturer wanted to give their property away for free, they would provide an avenue for it (the internet's been really good about that for unknown producers to get exposure). Piracy doesn't only hurt the developer and publisher by not giving them the funds in the first place, but hurts gamers in general. The reason is that big losses (theft in this case) lead to the necessity for loss prevention. Both the losses and attempted prevention of them drive the cost of making a product up. You complain about games being too expensive? Pirating is only expanding the problem. The more piracy is allowed to thrive, the less likely we'll be able to see reasonable prices in the retail market for people who want to purchase the game legally. Alternatively, the prices may remain the same, but the funds can be allocated to an aspect of the company that's going to improve the process, resulting in better gaming experiences. I'm not saying that money is needed to make a good game. But, companies with more funds will be more likely to use those funds polishing existing systems and probably will take more chances with ambitious products.