An older article, but worth posting. I'm not sure if I entirely agree with what they're asserting. Certainly, it's tough to get people to purchase content they've been illegally downloading. Tough, but not impossible. It's really the same thing that happened to music labels back in the day (and when I say day I mean 10 years ago).
What's especially tricky is that these illicit torrents often come in HD with subtitles. Something that you're only just starting to see through legal channels. The good news for distributors is that piracy tools are getting smarter. For example, YouTube has done a great job with their content management system and claim/content blocking. Hopefully, this will stem the tide enough to pave the way for the legal option.
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Iwata noted that due to market saturation, illegal downloading, the worldwide recession, and the rising yen, “It is easy to imagine the global marketplace shrinking from 2010 onward."
http://www.icv2.com/articles/news/14201.html
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