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I rarely buy second hand now that games are on disc, I would say there is nothing wrong with the idea of second hand games at all, of course they should be sold again or else what a waste of a disc.
however if particular stores are doing what d21lewis said then i would say that particular store is totally wrong.... Something reasonable along those lines would be...bought for $50, sell to store for $20 (not bad) and they sell it for $30-$35 tops....second hand games being $5 less is stupid.