Gary was modifying hardware that people owned. That the modifications he was doing allowed for the play of pirated games is not in itself piracy. Besides, there is no fucking way he personally cost them enough money to justify having to pay them 30% of every dollar he makes for the rest of his life.
An expanding market and competition don’t change the fact that prices go up when prices go up. I suppose I can grant that it’s cheaper to sell ones and zeros over the internet than it is to ship a bunch of discs to every GameStop. But still, physical manufacturing and distribution make up a small percentage of the price of a game