... What's worse is that they apparently still plan to sell their consoles at a loss while at the same time blocking used games. Are they nuts? For most people there are two reasons to buy used games:
A) I can't get it new
B) I can't or don't want to pay the full price for this medocre looking game
If a game fits one of those categories I won't suddenly buy it new when it's not available new, I won't buy it at all. I'm also not interested in keeping games for eternity, I sell many of them after I finished them or lose interest, if I can't do that anymore I will become more picky and most likely buy less games in the future.
... and all of that puts negative price pressure on the games themselves. So if the retail price of the game goes down, more people can afford to buy it new. The more people buy new, the HD twins and software developers can collect their fees.
I don't expect either Microsoft or Sony to have the guts to do this, but I do see a way in which this could work. The $60 price point would have to go though.