Hundreds of dollars?
I know someone who has _at least_ 60 games illegally added to his console. At $50 per game, that's a $3000 loss to companies. If 333 people also mod and add 60 games, that's a million dollars. 333 is obviously a gross underestimation of the number of people throughout the US illegally using their mods.
Now many of the games would never have been bought otherwise, and the number of added games will vary, along with the cost, but my point is to show that your claim is quite misleading. A case like this acts as a deterrent beyond this one kid.
FYI, at 333,000 people modding and adding 60 games (I think more than a reasonable figure if you include the world), the industry is now at billion dollar losses.