They didn't disappear, they moved online. You modify your own console, download the cracked games and burn your own physical media. Selling actual discs became less profitable (fewer buyers) and riskier (stronger enforcement).
Also selling physical (or digital) copies was rarely done by the crackers themselves (that's actually looked down upon in the community), mostly by third parties who usually had better Internet access/knowledge. When everyone started having unlimited ADSL/etc, their small business dwindled quickly.
Also selling physical (or digital) copies was rarely done by the crackers themselves (that's actually looked down upon in the community), mostly by third parties who usually had better Internet access/knowledge. When everyone started having unlimited ADSL/etc, their small business dwindled quickly.