"No one knows the PC market better than Valve, and in a recent interview with TCS, Gabe Newell explained why Valve is so successful. Recently we reported how Ubisoft were shunning the PC market due to Piracy, and imposing heavy DRM on their customers, but according to Newell that’s not really the right way to go about it.
He said that there is a general misconception about piracy, and it’s not really the high cost that forces people to pirate. It’s about the delivery service and how convenient it is to people with purchasing power."

In short, piracy isn't a problem if your service doesn't suck. Read the full interview here.
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