It's not a lost sale because pirates are already jailbroken and therefore can't buy it, and unless they unjailbreak (not to mention lose all of their other pirated apps), there is no way they are going to pay for it. It would only make sense to do this if the act of pirating the game actually made the company lose money.
Honestly, it seems like the best way to combat iOS app piracy would be to upload a bunch of non-working versions to those piracy sites like FilesTube and Mega. That other game company did it pretty well.
You seem to misunderstand my post. In normal conditions, software pirates equates to lost sales for a software developer. In this case, it's not equivalent because there is a measure against jailbreakers who are not exclusively all software pirates.
The simple act of pirating software is lost revenue to the company. Because it took the company resources (time, money, developers, etc.) to create that software. Whether the software is great or not is not relevant here. In this case, the developer decided to rope pirates and jailbreakers as one and the same, which is not correct.