Used games are bad for consumers.|
The used game market had created a need for massive day one sales and a "hit-driven" industry. A game that does not charge out of the gate on day one, instead becoming a "cult classic" will have far more negative impact to its bottom line because of deco. hand sales.
This is why no one will back a sequel to Alan Wake. The first game has cult status and is on the lists of games people want to eventually play if they haven't already. Second hand copies are readily available though. Because a publisher thinks it had poor odds of making good money quickly on a single player game like this, they will look to make CoD clones instead.
By right, destroying second hand should un-fuck the market and we should see more varied product as niches become more viable. By rights, a cult game should be enviable because they have "a long tail" but if that tail is only profiting GamStop no publisher will aim for or create sequels to such games, or make sequels like Dead Space 3 which don't appeal to fans of the original genre.