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I read somwhere a couple years ago that GameStop was making more than 50% of their profits from their used titles. Of course, the profit margins on their used games are likely much higher than on new ones, but I think its fair to say that a *lot* of people buy used games these days. A pretty significant amount of space in games stores is devoted to used titles -- and that's a clear indicator that it sells well.

 

I buy all my CD and DVD games used, because they can be resurfaced.  I buy used BluRay games if I can see the disc beforehand and its flawless.   I've never actually seen a scratched BD, probably due to their coating material, but I can imagine that, once they get scratched, they're done for.