As someone who does buy used games to get to know a series, this will be bad. I would plunk down $20 to try out an early game in a series, then buy the new games of the series. That won't happen anymore.
Nor will I be buying a 4th gen console as most of my console gaming does derive initially from the rental market. Reason, reviews can not tell me how I will like to play a game, only playing the game can tell me how I will like it. However, a number of those rentals do turn into purchases if I like the game, so they have lost even more sales on my behalf.
I see this as much the same as the DRM debacle with music. Only, the artists, in this case, the developers, do not have an alternative to the regular market. Now, musicians give away the music, hoping that some will pay, to earn their money performing concerts. Game developers are going to have to figure out the alternative method of revenue. Perhaps charging for the online experience of the game. Then, they don't have to even sell the initial copy. But, that won't apply to all games as not all games have online or should have online play.
Of course, just because the console makers put this "feature" in, does not mean game developers have to adhere to all the rules.