Yah originally I thought the DreamCast was a victim of rampant piracy. However the 360 has been hacked for years, with a simple a flash of the dvd drive firmware, its as easy to pirate as the DC (albeit you didn't have to mod the dc drive). Yet the 360 has become very profitible despite piracy. Other then banning consoles from online play (and the recently implemented copy protection), Microsoft has taken it with easy.
Sony on the other hand, has gone into full panic mode. The xbox1 was also a very hacked console. It created an increase in console sales. The same could happen with the ps3. If Sony could figure out how to turn a profit on the actual consoles (instead of the modern way of selling consoles at a loss, and making it up on game sales). They could start making money. The 360 hardware has turned profits for a while, but I don't think the ps3 does. Maybe thats why Sony's panicking. Selling consoles at a loss to people who won't buy the games?