Not true
Piracy IS a problem, but not to the degree that you think it is.
The Gaming industry is bigger and more profitable than ever before, and so is the Movie industry. PC gaming died because PCs aren't really built for gaming, its as simple as that. I can't recall how many times I've bought a PC game to find out its not compatible with my hardware, or runs choppy, or that my soundcard wasn't compatible!
I remember the day I bought the first Playstation in the 90's, I went home, and I deleted all the games from my PC and haven't installed a single game since, not only is my PC much more stable now that its dedicated to work and browsing the net, but I can't imagine going back to hunching over my desk and mashing the keyboards and staring into a 19" screen, instead of sitting back on my couch with a wireless controller playing games on an HD TV, buying games that work out of the box without the need for any hardware upgrades!
As for the Music industry, the situation is VERY different:
The Recording industry isn't as old and established as the movie industry. As a matter of fact they appeared in full force in the 80's with the rise of MTV, started locking artists into contracts that took away their copyright to their own music, and the Artists had no other choice but to sign into these abusive contracts because the industry largely controlled the Marketing and distribution channels, and the performance venues that signed exclusive contracts with them (see Ticketmaster).
As a result, the Recording industry suddenly inflated into an unnatural size, and started making record profits that made other industries jealous, and then started marginalizing real music and real artists, and promoting their own brand of over-produced "Music" that is laden with Marketing Buzz words, teenage sex, and fake artists who don't write lyrics, don't write music, can't play any instruments, and don't even dress themselves in the morning. These "Artists" were created by the Record Industry themselves in an attempt to marginalize real creative musicians who can write, play and produce their own music because they were simply too much of a flight risk!
Read about Pearl Jam, Prince, The Beatles, and Radiohead's struggles with the control the Recording Industry has on the intellectual property of the real artists if you want to know what I'm talking about. And read about how smaller artists end up with almost nothing after the recording industry take their gargantuan "fees", while profiting from the licensing of their music!
I remember the 90's when I would drive around town going from one music store to the next in an attempt to find any "Real" music, and never finding anything but boybands and Pop artists! Music Stores where constantly reducing shelf space for Rock, Blues, Jazz, Metal, Progressive, Rap, Hip Hop, Classical, Fusion, and world Music in favor of boybands, girlbands, and overly produced bland music manufactured for the masses.
What happened to the Recording industry isn't because of piracy.
What happened is they realized that the distribution medium they controlled was slipping away from their hands, and the internet was giving rise to independent Artists, and giving them total control over their own distribution medium on the web, rendering the hold that they had on them obsolete! So they tried to fight it, refused to submit to Amazon, Apple and others who started introducing digital music for reasonable prices, and continued to promote classical inconvenient Physical Mediums like CDs that got scratched and damaged at the touch of a finger!
How many times did you buy the same CD twice or three times, because the first CD was scratched beyond repair? Its not fair, and its a waste of my money!
What we are seeing here, is the Recording Industry's wild frantic response to losing their hold on the artists and the public due to their abusive practices, especially since the internet brought the Artist and the Customer closer together than the Recording industry ever could.
Not to mention, this new legislation will give government the power to shut down any site without trial or a court order.
That is why there is so much "Shouting"!
Biting the hand that feeds IT
