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[–] jasotastic ago 

If people weren't allowed to trade in games, most of us (with less disposable income) would find ourselves sticking to games in the same franchise that we like. We wouldn't necessarily have the ability to take a risk on something like Shadow of the Colossus. So, we'd end up missing out on some REALLY great games. Of course, that affects the publishers by causing those smaller experimental games to take a bigger chunk out of their budget with lower ROI.

I don't mind spending money on Star Ocean and maybe not liking it if I can fall back on a GameStop, GameXchange, etc. to purchase it from me and recoup a little of my cost towards another game.

All in all, I think we, the consumer, suffer the most if trade-ins were not available in their current form.