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All it does is make the purchase of a video-game console less appealing to the poor and lower-middle class. In consequence somebody who would buy 1 or 2 new games a year on that console, will buy none as they would decide it's too expensive to own such a console at all if they must buy ALL their games new. Game sales will either remain the same, or in my prediction, DECREASE.

Anyway, fortunately we have competition and the free market where consumers can choose other platforms that do not restrict used gaming to game on.