Computer software piracy numbers are some of the most over inflated numbers around. The industry claims multiple billions of dollars of lost sales, but they come to their number by counting the total number of pirated programs and multiply the value.
One main reason this doesn't work is that there are tons of people who would play a game for free, but either because they can't afford it (who can afford $100 a time for dozens of games?) or because the game itself isn't that interesting to them, they would never buy it. If it was impossible to pirate games then those people would simply not play.
I myself have a copy of a golf game on my PC. I don't even really like golf, but thought it would be a laugh to play around with for a few minutes. I would not be disappointed if I never got it, and definately would not have paid for it.
The people I do not like are the ones who try to turn a profit off piracy. The people burning off dozens of CDs and selling "collections" for $2 a disk. These people do it with DVDs, games, programs etc, and give often low quality versions that ruin the purchase.
Sounds like the majority are coming from the shopping destinations such as Hong Kong, Singapore, Thailand and China. I believe if those sources were stopped then the industry would be well on its way to getting rid of the profit pirates.