There's been a lot bubs being hubbed lately about used video games and how they potentially hurt the industry. It's an interesting topic for a number of reasons. First of all, games are pretty damn expensive. It's difficult to think of a more expensive hobby that doesn't involves making tiny lines on mirrors or cooking things in spoons. That cost drives players to towards alternate methods of buying games other than plunking down $60 at Best Buy.
 
Some players will outright pirate games. This is easier to do on the PC but there are mod chips or other accessories out there for pretty much all the consoles and handhelds. I'd never go that route but I do buy mostly used games. Some in the industry would argue I'm just as big a part of the problem. I try to avoid Gamestop and it's parasitic, exploitative brethren. But eBay/Half.com and services like Goozex keep most of the money in the hands of the players instead of lining corporate pockets. But that money still doesn't filter back to the studios. I buy used because I can't afford to buy new. I love video games and play a lot of them. I wouldn't be able to do that at full retail price. But I'm hurting the industry I love by buying at prices I can handle.
 
This is important because games have a weird business model. These multi-million dollar productions get one shot to make their money back and typically have a shorter lifespan than a mayfly. Most media industries don't work like this; they double or triple dip -- sometimes more. Books come out first in hardcover because the publishers can charge more for a nice edition. Big fans will buy that book new even though they're getting gouged to get it right away and in a nice edition. Later, that same book will come out in a mass market paperback for a fraction of the price. If you're willing to wait, you can save a lot of scratch. I know the consoles all have variations on the greatest hits lines availaible  at discount but those are only games that have already been successful.
 
Film has a similar model. If you're a big fan or movie buff you'll pay a premium to see a movie the way it was intended, on a giant screen with a kick ass sound system and overpriced concessions. But then there's that secondary market of home video plus a whole hell of a lot of other ways to option those rights.
 
Video games need a similar secondary market controlled by the publishers and studios to keep money coming in... and i think it's already there.
 
The $60 disc should still be the equivalent of the hardcover book or theatrical release. It's the nice, if a little pricey version for hardcore fans and enthusiasts. It'll only be available for alimited time at a premium price. Then get the damn things off the shelf, Disney vault style. From then on, maybe six month to a year later, always make a version available as a cheap digital download. Make services like Steam or Miicrosoft's Games on Demand a defacto, default option. There's little reason to not put every game on a digital distribution service eventually. PC games are mostly there but consoles (at least next gen) should follow suit. 
 
There aren't any storage or production costs for digital distribution outside of hard drive space and a little bandwidth. If Nintendo can charge $10 for old N64 games on the Virtual Console, surely Sony and Microsoft could keep a larger back catalog of $15 oldie goldies and overlooked gems. These could be the paperbacks of the videogame world. If I'm really looking forward to a game, I'll buy it knew and get a nice physical thing to put on my shelf. Otherwise, I'm ok waiting for a cheaper digital version or taking a chance on something that may have slipped under my radar the first time.
 
This way, publishers could undercut and bypass the used market, maintain a better back catalog like a music or book store, and keep money flowing into developers pockets where it belongs. They're so close already but they need to go full bore with this. I don't want physical products to go away anytime soon but I'd like to think of them more like vinyl records - great for collectors and true fans but secondary to cheaper, more accessible and more convenient digital downloads.
 
What about you guys? Do you buy used games? From where? How do you feel that impacts the industry?

I never buy used games, not after what happened LAST time

I am really looking forward to the Steam Sales of Xbox live to one day happen. Oblivion for 480 points? Sold. Halo 123 for 1200? Shit yeah. Arcade games for 80 and 160 points, i'll suck that up like coke off a stripper! 
Never gonna happen though, and I really should just build a gaming PC and get hooked on steam at this point. there is never going to be price parity between new retail, new Digital, used retail, and older digital content. And it fucking sucks.

" I never buy used games, not after what happened LAST time "

" @blazerx9x said:

" I never buy used games, not after what happened LAST time "

What happened last time? I'm intrigued. "

I think the Games on Demand option is brilliant. Not only are they cheaper, but I don't have to go around searching for the game at stores that probably don't have it anymore. Beautiful Katamari is a game I bought just because it was right there, with no effort involved in buying it.

I do buy used games from time-to-time but mainly been saving up to get games I just really want. I have also been using Gamefly which has been a great way to just play a game that I know I don't want to keep but had interest to play it (like friends with benefits ;) ). 
 
Thanks for sharing your thoughts on the matter.

" I think the Games on Demand option is brilliant. Not only are they cheaper, but I don't have to go around searching for the game at stores that probably don't have it anymore. Beautiful Katamari is a game I bought just because it was right there, with no effort involved in buying it. "

I buy nearly all my games used. Game and Gamestation are the best shops in the UK for getting great deals. 
 
The main reason I hardly buy new games is because of how long they last me. For example, recently I picked up Bionic Commando for £8 and after three days I know I'm probably not going to play it again, however with a game like Bayonetta, I'll pay full price because I know I'm going to get my moneys worth. I would have been extremely pissed if I paid £40 for Bionic Commando.
 
I would have no problem paying full price for a game if they were actually worth it. A 10 hour single player experience is not worth $40 in my opinion. I've recently been using Steam a lot, they have great deals on sometimes.

  How do you feel that impacts the industry? "

I buy used and rent through Gamefly. I spend $60 on games that I really want.

You seem to be forgetting that games downloaded from Steam can and are ripped and uploaded to filesharing websites.
 
I agree though, this should be the standard in the console market, too.

My father was brutally murdered by a used game, right in front of me. 
 
The worst part? Gamestop wouldn't even take it back. 
 
Never again.

When Playstation Network starts selling more full-BD games on PSN instead of the shitty drip-feed that's going on right now, sure, and maybe if they had more random sales like Steam does, absolutely. Maybe when PSN's web component was more akin to XBLA's web component, absolutely (and that means no need for a stupid Media Go bullshit application that only accesses PSP content).
 
Until then, blergh.

Publishers aren't mad about used games six months after the launch of their game.  They're mad when used games are being sold in under a week of release.
 
The 'frugality' is all bullshit, too.  Used games are 5 dollars cheaper.  The games price drop already, you can buy a new copy of Split/Second for 40 bucks now.  Or a used copy for 35.  I would've payed the 5 already just to make sure I'm not getting a jacked up version some kid had stuck in his mouth.

" @Brodehouse:   I'd never buy used if it was only a 5-dollar difference. But sometimes, often, the gap is a lot larger, especially on sites like Goozex or eBay. I remember getting GTA IV about four or five months after release for less than $30 on eBay when it was still going for close to full price at retail. "