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The games coming to PS Plus for free are games which everyone who wanted to buy bought at the time of release.

They come for free to users who wouldn't buy them even at a budgeted price. Which I would think undermines the used game market.

I think its a good move for the publishers and the platform holders. It means that the publisher can generate interest in a game to users who may have had no interest in that game previously and it also means the publisher could make profit on the DLC of a game that is distributed freely.