I think in this instance it's fair to say the game company has made a mistake.
Like T-nex said, the DRM is going to have little or no effect on piracy (I think it's been cracked already?) and is only going to aggravate players who bought it legally.
Ubisoft could have predicted (and probably did) that this would happen, and they should have used other protection methods that, while equally ineffective, don't wreck the game for those who buy it.
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