Actually no, this is a genuine second hand game involvement. Over the last few years HMV has offered a Re-Play section with traded in games available at a discounted compared to New Retail price. I don't know if the games manufacturers get a cut or anything but it is definitely not a returns policy, otherwise they would arrange for refurbishment and resale at full price.
You don't think I'm actually denying the existence of a used game market do you? I'm well aware that stores sell both new and used games. I'm referring to HIS example - the store letting you get a nearly full refund
only within a week as a returns policy. Not that they don't buy used games, but they sure as hell don't give you 87.5% the original cost on something you bought a year ago. There's no way that'd be profitable.
And I'm really surprised that this retailer is willing to take back opened items for nearly full price. They're probably repackaging them and selling them as new and at new price. The slight cost reduction is probably a repackaging/restocking fee. I would hope they inspect the goods to make sure they're like-new quality. Optical media games are kind of a grey area for used sales because they don't deteriorate in the same way a lot of other goods do (especially say, cars.. but even game consoles can, I know I suffered by buying a used DS).. so it's difficult to say if the end buyer is getting cheated by being sold a slightly used game at new price.