Rentals and used games are currently a major problem for games i do believe that movie studios get a large cut from DVD sales to rental services (the rental service pays a premium for the right to rent out the movie) however Videogames companies do not.
I personally think that videogame companies should demand that rental companies only use "rental" copies of games and pay a small royalty every time a game is rented out (small being something like $0.05 per rent paid quarterly). In order to force the hand of rental services SONY/Microsoft/Nintendo should either refuse to sell copies of games to these stores(but this could spark litigation)
OR every game has a unique code on it(pref on the disk and manual) -- enter the code onto your PSN/XBL/Wii account (first time the game starts up) to authorize the game to play. Want to lend the game to a friend? I guess the code could work on up to 5 accounts and you may be able to un-authorize accounts to if you have more than 4 friends wanting to borrow the game --> while gamestop / rental services wouldn't be able to function, after all 5 rentals and most games would become unplayable without illegally modifying them.
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