Used games blocking is a red herring at this point. Short thesis right now hinges on the proliferation of digital distribution and streaming games. Yoshida has stated that all PS4 games will be available as a digital download. Free to play or other subscription models could further degrade GME's core used-games business and there is no way for them to replace the high margins that used-games provide. No backwards compatibility will also hurt used PS3/2/One game sales.