J. Allen wrote:
She probably has a booth at a flea market. I used to see that kind of fly-by-night stuff happen all the time there.
That's one possibility. Another is that they are either selling them at a used game/dvd store, or they are returning them to a place like Wal-Mart.
There was quite a big scam going on at the Wal-Marts in this area about two years ago. Scammers were buying games, game systems, and other electronics, taking everything out of the packaging, then adding blank cd/dvd discs (for the games) or styrofoam and rocks (for the game systems), getting them shrink-wrapped, and returning them with the receipts. Since they had paid cash up front, they got cash back - and still had the merchandise. One of the locations had lost more than $10,000 through the scam before it hit the news.
I've heard of other scams where people post on places like Craigslist, using a dummy email address, meet up in person (never using a phone), and pocket the money. The buyer thinks they are getting something brand new, and only finds out they've been scammed much later.