I personally have also taken the dont buy on day of release stance with video games - £35 for a new release is to much IMO....i cant think of a single video game Iv bought recently for more than £20.....I either wait for prices to fall, or jump on special offers and discount codes to get more recent games. Good multiplayer means a lot to me - and its always rewarded with a purchase - COD4, BF2 (& Special Forces) and BF2142 + northern strike are the most noteable (and most played) examples.
As for OS piracy, thats not been an issue for me - as a student I got freebie software (OS and Office suite) from the Uni ICT department. Where I work now has a staff purchase scheme with Microsoft - that allows me to buy one full copy of every new retail version of Windows at heavily discounted price, and the full office suite for the cost of shipping and handling - so completely legitimately, Vista Ultimate x64 RETAIL AND the complete Office 2007 retail package cost me under £100 combined for both! I can only buy one tho, so if I loose my office 2007 key im out of luck. However if Office 2008 came out, I could buy one copy for the p&p price again......
The reason I havent got any form of console is the stupid price of games. I f I wont pay more than £20 for COD4 on pc, I'll be damned if i'll pay £40+ for it on a console....