I differ. The Xbox has had a huge piracy problem and they are so successful they can increase their prices. This was inevitable – you simply cannot put something into someone’s hand and say it’s not crackable. Would I try it? Sure. I’d buy a dongle just to see how easy it is to install this stuff.
The only console that arguably was killed by piracy that I know of was the PSP and even then Sony have to take the blame for not locking it down, not promoting it and not getting damn good games out. Their inertia did for it too. The PSPGo is a joke.
As for games cheats – they can afford the dedicated servers now they are charging late-comers a tenner to join in.