Blocking used games would be so stupid.  Almost everyone I know funds the purchase of new games by selling the used game that they no longer play.  I can guarantee that the people I know, including myself would buy far fewer new games if we couldn't sell our used ones.  Also, again, people that I know tend to take more chances on games that get iffy reviews figuring that if they don't like the game, they can sell it to get most of their money back.  Anyone who thinks that used game sales is bad for the industry hasn't thought it through.

Having a video game system that blocks used games is no different than a DVD or Blu Ray player that blocks used movies.  Think about how many fewer movies would be sold if people couldn't rent them.  I personally rent tons of them that I would never buy if they didn't allow rentals.

People that don't buy new games aren't helping MSFT or Sony out anyways.  They aren't making money off of them.  As I said a few people will complain but they will buy them anyways.  

Also used movies arent sold next to New movies like they are with games.    People dont buy a movie and then take it back 2 hours.  Doesn't work that way.

XBLA
http://marketplace.xbox.com/en-US/Product/Modern-Warfare-3/66acd000-77fe-1000-9115-d802415608cb
PSN
https://store.sonyentertainmentnetwork.com/#!/en-us/games/call-of-duty-modern-warfare-3/cid=UP0002-NPUB30787_00-MW3FULLGAMEDL001?utm_medium=referral&utm_source=pscom&utm_campaign=pscom-UP0002-NPUB30787_00-MW3FULLGAMEDL001&smcid=ps:call-of-duty-modern-warfare-3-ps3:up0002-npub30787_00-mw3fullgamedl001:ps-games-call-of-duty-modern-warfare-3-ps3.html

COD:MW3 is $59.99 on XBLA/PSN and it was released on: 11.08.2011.
Almost a year and a half after it was released it didn't drop a dime on XBLA/PSN.
Guess who is going to have monopoly of the digital market when used games are banned?

Retail it is 35 to $40.  Retail is what we are talking about, not digital.

No allowing used games will make me buy less games, since i can not sell the game anymore if i don't like it. So games i'm unsure about will not be bought (at least not until they are dirt cheap). Also they'd have to lower the pricepoint because a resellable game is worth more to me, since i can get money for it. If they don't i'm going to ride out my current gen systems longer and become a verry late adopter to get the games cheaper.
Not being able to resell it would make it equal to a digital copy for me and i have jet to buy a digital game at full price.

So while not a dealbreaker it'll still be a loss for them (in my case at least).

its actually funny how people dont complain about used games on PC. i guess people just accept that digitally downloaded games cant be resold. or it is possible that because steam offers so many great deals and prices that people simply dont care to buy used since buying it directly from steam is the same price or probably even cheaper

Jay you know the price is $35-40 because the used market is cohercing the retailers to do so. A person has a choice to buy it used for $10 dollars on Amazon.

You answer your own question plus PC gamers pirate games like there's no tomorrow. So why would they complain when they have favorable solutions, unlike console gamers.

Disagree.  It helps boost sales when price drops come in. Same reason valve drops prices of games on steam over time.  XBLA and PSN works differently because they haven't been as successful as valve yet with digital.  XBLA has been doing sales like valve as of late and PSN has introduced people to PSN+ so it should help them doing things like this.

Except you the publisher gives stores 4 dollars per 60 dollar game. How about giving retailers a bigger part of the game pie instead? They wouldn't push used games the way they do.