I think his logic is severely flawed here, by the way. I get the sense that he & the other execs at Crytek were sitting there staring at some Crysis piracy numbers and doing the math in their heads... "X million pirated copies times $50 a copy... we lost hundreds of millions of dollars due to pirates!" when in reality God only knows how many of those pirates would have otherwise been paying customers.
Even I get caught in that train every so often since its the easiest way to see how piracy can affect sales. Of course, you pointed out a major flaw. Hell, out of the number pirated, how many were the same person looking for a working copy?
Let us not bring Gary into the discussion... I don't anyone can handle his girth.