It does, when SecuROM's much vaunted system resulted in more downloads than something like Fallout 3 which effectively didn't even have a disk check, and it garnered a lot of negative press. Probably the biggest problem though was the enormous support load it was generating. Using EA's own figures around 20,000 people had 'bricked' Spore within a couple of months of its release (with around 20% of buyers having 1 or fewer activations left), and the support load was still increasing.
EA's lost money hand over fist for the last few years. They're not in imminent trouble though their cash reserves have dropped around 70%, and their share price had dropped around 70% as well. Revenue itself is irrelevant. Last (?) quarter 2008 they lost a huge amount (~800m USD, iirc) though that did include some one off costs.
LGS is a poor example.
LGS did not go out of business because of piracy, nor even because of poor sales. It went out of business primarily because of its own bad business decisions, mostly going back to the decision to self publish Terra Nova. All of LGS's late, main line PC titles (Thief 1/2, SS2) were solidly profitable, though due to a poor deal with EA they never saw much of SS2's money, and Thief 2's came too late to be of much help.
I would just point out that while "Planescape" is dead "Torment" isn't. WotC still maintains a trademark registration against it (Reg# 2778296, if anyone's really interested and knows TESS) so there's no inherent block to a Torment 2. Most interesting thing about Planescape as an IP is that apparently in 2003 they were planning on making a TV series (!) in the setting as there's an expired registration against Planescape for use in TV.