If you consider this you also have to consider people who pirate a game and then decide to buy it later when they get the money or they realize that it's worth the price. It happened to me on several occasions.
There's also the "photoshop effect", where piracy helps ensure that the application remains the de-facto standard. Admittedly this is less applicable for games but it might help with 3rd party controller support, modding community etc...
In the context of niche games with pricey DLCs, I now have a significant collection of TS2018 DLCs. If I was not able to "try out" that game a few years ago in a less than legal fashion, I likely never would have gotten into it in the first place. I have a similar trend with books; on several occasions I've ended up owning (legally) the entire work of some author, simply because a friend gave me their copy of a book.
I also believe that in the age of Steam specials, refunds, etc, people who pirate your game are not "lost sales". They are usually doing it because their appetite for games outstrips their budget, and they were highly unlikely to pay for it in the first place. But there is a significant chance may convert to a paying customer, or at least market the game by word of mouth.
I’ll add my anecdote here. I haven’t pirated a game in ten years, but when I was a student, I pirated most of my games. Almost all of the ones that I played for more than a few days, I now own legally. Some of these games, I’ve become a big fan of the series and buy all new games (I pirated the original Witcher game for example, I now own it, the collectors edition of the second, the third game and am eagerly awaiting basically any game the developer releases. While it’s likely I would have eventually played The Witcher 3 anyway given how successful it was, I’d likely have missed the Witcher 2 and probably wouldn’t be such a blind fanboy of anything CDPR release)
I also regularly NOT buy games (but nowadays also don’t pirate them, in the past I might have) if they hnave intrusive DRM
There's also the "photoshop effect", where piracy helps ensure that the application remains the de-facto standard. Admittedly this is less applicable for games but it might help with 3rd party controller support, modding community etc...