I agree, piracy is a market failure.
Speaking from personal experience, most of my games and movies come from used store, like CD Exchange, Pawn Shops, Game Stop etc.
This generation most of my PS3 games I got for $20 or less, and most movies for $10 or less.
If companies priced their product at that level from the beginning, it would save me the wait time and they would get my money for their product not the used stores. I can afford $10 - $20 games, but not $60, actually I can afford $60, but choose not to spend it, I don't think is worth it.
In developing countries people don't make $2000 a month, so they cant afford $60 game, but pirated copies can be purchased locally for $5 - $10. The pricing needs to be made based on local conditions not global.
My $0.02
