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Visits to piracy websites have increased 12% in the past four years
(www.fastcompany.com)
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No it also means it's a service problem in the sense that it's not priced right for a geography. Pricing a game $70 where local average monthly income is $120 a month is a service problem. If you expect people from that geographic region to pay, the product should be priced within their means. And thus argument is valid only for digital goods where every new copy of the said goods costs mere few cents.
You’re gonna have to put in some work to convince me he used “service“ to also say “too expensive” when he said that. Hell GAAS as a concept didn’t even exist when he said that.