This theory doesn't match the evidence in this case, though. Piracy has skyrocketed over the years, but the gaming industry has shown no signs of approaching anything near a situation where it's "no longer tenable to make games and no one has a game to play." On the contrary, it's gotten bigger and bigger as well. Even in this age where thousands and thousands of both legally and illegally free games exist for all sorts of different platforms, big titles like CoD Black Ops are seeing record sales. There's very clearly something about the economics of this situation that the old theories and models are missing.