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What happens when pirates play a game development simulator and then go bankrupt because of piracy?

This is all true.

A game developer made a game in which the player assumes the role of a game developer.

He seeded unlocked copies of his game online so people could easily pirate it, with one small change: the player of the pirated version will suffer from high rates of piracy of the games they "develop" in the game.

The developer of the game is suffering from high rates of piracy, complaints, and is not making any money.

You couldn't make this up if you tried.