The last sentence of the story is the best: "He also believes that the only way to stop a pirate from not paying for a game is to have a face to face conversation with him or her, in order to explain the consequences of their actions"
How about not making shitty products? I understand the misconception is that you can make a subpar game and it should sell 100m copies as long as you market it and add a bunch of $20 DLC, but maybe that doesn't help? I know WoW Expansions sell well each time around, because they are good quality products, I guarantee Diablo 3 will sell well, guess why!?
The fact is, Piracy is rampant because of multiple reasons;
1. There is no incentive to actually buy the game. Witcher 2 has a standard edition that comes with a butt load of extra content, compare that to most games, like Dragon Age 2, where you essentially just get the game, and are asked if you want to buy DLC immediately upon starting it up. Doesn't exactly send a good message.
2. Low Quality Products. I refuse to buy a game that costs $60, and was clearly pushed out the door as fast as possible. Day 1 Patches? Zero Day DLC? This all ridiculous crap. Dragon Age 2 shipped without HD Textures. Are you ****ing, kidding me? Could they have made it any more apparent that they rushed that game out for some quick cash?
3. Diminished Creativity. Who wants to buy 3 different versions of Guitar Hero each year? What about 3-4 CoD-clones? The sad part is that this actually happens. One game does something well, and then everyone beats the shit out of the concept. People don't want to keep buying the same game at full price.