However, I wanna know what happens with game rentals then.
Just to play devil's advocate for a moment, I think game rentals could still work, but it would be done digitally via the console and its online service thing. You would spend a few dollars, and you could get to play the game for either a limited amount of real world time, or a limited amount of in game time. Then the thing would expire and lock you out unless you paid for an additional rental period.
Actually, this is probably the way all gaming is headed anyway, because if you read the fine print we never actually own the games, we only own the discs they are on, so according to those terms the game companies legally can shut it down or lock us out of it anytime. You have to figure a game like Madden is already like that at least when it comes to the online aspect of it. We can only play that for maybe 3 years online before EA shuts it down, and then our only option is to plop down $60 for the current year's Madden game. If you think about it, its kinda like renting the game. For $60 you get about 3 years of rental time before the game is obsolete and broken.
Just for clarification, I think cutting out used games is a bad idea. Sometimes I decide at a later date that I want to try a game and it's out of print.
Its a bad idea for you and for me, but that's our problem. To the game companies it isn't a bad idea. But one positive thing in our favor is that it is Gamestop's problem, so we have this big 800 lb Gorilla on our side. We are just little piss ants who no one cares about, but Gamestop can duke it out with those big entities on more or less even terms. They aren't doing it because they care anything about consumers, but because it is in their own interest. Fortunately this time around their interest is also our interest.
Don't kid yourself if you think GameStop wouldn't sell the PS420 if they didn't support used games. That would be effectively cutting 2/3rd of there console market away.
It would be cutting 2/3rds of the consoles away, but not necessarily 2/3rds of the market away. If the Wii U has 90% market share (not likely, but possible) then the PS420 does not represent 2/3rds of the market, so cutting them out wouldn't be a big deal.
The Wii U will have a year or two head start over the competition so its a fact that it will have the lion's share of the market, and by the time the PS430 shows up they will have an uphill battle to catch up. My point is that if Gamestop and other retailers shun them then its going to be very difficult or even impossible to ever catch up.