Software has no marginal cost. You can make something that's used by untold millions of people. Even if many people pirate enough people won't for you to recoup your development cost and then some. Software is easier to produce, sell, and distribute than any physical product. You don't have to worry about warehouses filled with unsold inventory. You don't have to worry about quality control and returns. It still blow…
The problem with software's non-physical nature is that it has runaway market dominance issues. Software, especially software that interacts with other software, tends to be either open-source maintained by a "community" or a thinly veiled world domination plan.
Low barrier to entry is really important for new software. So it’s this struggle with some orgs trying to increase lock-in (Microsoft, Oracle, etc) and a constant stream of new products taking off, dominating the world, and getting knocked off themselves.