"Making a fraction of the money we once did is still beneficial due to the PR. It will pull people into our retail locations, especially when 'making a game used', so they can see our inventory and hopefully buy some of this useless crap nobody wants anymore...."
How much will "pre-owned" cost? Do we know this yet? The last I read, "used" prices would be close to paying full price or something like that?
As much or little as MS and the developer wants it to. They will be setting the 'make it used' fee, which the store has to pay them to be able to resell it... They could also use big data to adjust prices for maximum gouging across regions, depending if the system is setup pre or post customer resell. If the cost of activation, and thus the game cost is determined at purchase something along the lines of, "Hmm, seems we had 4 copies of halo 5 activated on 4 consoles all in the south region today, Those 4 accounts have more friends located in the south region so lets put their used copy prices up by $8 in that region for a bit which will put them on-par with a DLC copy" Of course the system would have the intelligence to make these changes on a daily or even hourly basis.
If they will do it pre, meaning its value is determined and set on the day of trade-in/exchange, meaning they can gouge the customer trading in rather than buying depending on what the local market looks like for that particular title that day. Either way its setup to maximize cash flow to both developers and MS itself which should result in more developers making more money and making better games. hopefully. Theres a reason MS is jumping from 15k servers to over 300k.