Playing a game you haven't paid for on said X-Box does, namely the $50 that Microsoft gets from people who DO pay for the game.
Mmm-hmm. And who said I was going to buy the game if I couldn't play it for free?

Microsoft does not lose $50 if I play a copied game without buying it. They only lose $50 if I play a copied game _instead of_ buying it. Simply playing a copied game doesn't imply that I would have bought it otherwise.

Oh, they do lose $50 if I would have bought the game, but instead I play the copied game, realize it's crap, and never touch it again. But in that case, were they really entitled to the $50?