I don't think its been mentioned here yet, but its not piracy that is making the impact on PC gaming. While PC gaming sales are still high, the overall quality of the game has decreased significantly. Most of EA's games are rehashed sequels with a slight graphical facelift and anohter 50 dollar price tag.
If you want to wipe out the bulk of piracy with one action, its a relatively simple procedure. Make the legal way easy and simple and the illegal way complicated and difficult. With the draconian DRM schemes that are becoming more and more, the illegal ways are increasingly attractive.
The second factor is to deliver a polished title at a fair price. The consumers are not beta testers and should not be treated as such, like Atari and Activision do with every title. With the big name publishers cranking out unpolished, buggy, rehashed sequels, loaded with DRM like candy corn, its no wonder why people are getting pissed off and turning to piracy.
I'm a big fan of Steam, online delivery is the future. With Steam, I can purchase my games, burn backups of my games, and install the games on as many systems as I want to without worrying about any DRM scheme. I believe Bioshock is different, however, I'm uncertain.
All independent studios should drop contracts with EA, Atari, Activision, Aspyr, etc and move to total online distribution.