This has been shown over and over. Some people refuse to believe it. The fact is, that pirates, on average, pay more for media and entertainment than non-pirates. It's because they are bigger consumers. So to get that fix, some resort to a bit of piracy and instead pay for concerts and such.

In video games the same thing applies. They pirate some games and purchase others. There's just too much media to pay for it all. So piracy has increased. The same amount of money (if not more) is still being spent though. Just in other areas.