For boxed games, it’s impossible to drive the prices down any lower. Second-hand is the only way people can get the games at a price they are willing to pay.

I think if second-hand was stopped, you’d find less titles being bought because no one will want to take a risk. Innovation would go out of the window and only a handful of developers would survive.

Also, the time is not quite right for digital distribution. The publishers still need these stores to get their products out the the public, and second-hand is the only way the stores can make a profit these days.

That said, they do mark up the second-hand titles a little too high.

Without the second hand market on the high street, and the fabulous prices being paid by outfits like CEX for pre-owned games I would be able to afford far less new titles then I currently buy (at least 2 month).

The existence of the second-hand market *stimulates* sales of new games, because people can now cash in a few old games and use the proceeds to buy a new one. And people are more likely to lash out for a new game if they believe they can get some of their money back later. Yes, some people are willing to wait a while and get their games second hand, but most people continue to buy when games first come out and their buzz is at a maximum.