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Joelcool7 said:
 If I were a big publisher I would begin talking to other publishers about an alliance. If a retailer sells my games used then I drop support for that retailer. Now this won't work if a single publisher does this alone. But say EA, Ubisoft, Activision, THQ all joined one another. They demand GameStop stop selling used copies of their games or all four companies pull their products. Well I am guessing even the mighty GameStop would bow to that kind of pressure.

That would be illegal in pretty much every country in the world. Look up anti-trust laws. Competing companies CANNOT work together on anything that affects product availability or prices, they can get billions of dollars in fines for that. They can't even talk casually about anything regarding pricing or the market place, that is illegal price cooperation.