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I don’t think either answer is wrong.
I always thought it was warez as in “wears”. My understanding is it was short for “softwares” or something. Take the end, add a dash of 1337sp34k and you get warez.
Maybe I’m wrong.
Except that softwares and hardwares probably came out of the word “wares”.
Software and hardware are both wares aka goods or services that are for sale. Merchants deal in wares. Pirates deal in warez.