Why not both?
Because DRM misfires for a small percentage of paying customers.
Those paying customers, ironically, usually get help from the pirate community to get their game working.
Then they go back to paying for everything, because they still trust game studios more than pirates. Wait no, this last bit usually doesn’t happen.
Overall DRM prevents zero percentage of all privacy, while hassling a small percentage of paying customers.
And I’m sure they understand that exposure also leads to more sales.