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I heard there's quite a market still: https://www.youtube.com/watch?v=kWSIFh8ICaA

Redbox is a thing. Not for renting out PC games, but there is a case for renting out physical console games. A large part of GameStop’s business model is retrading second hand games.

AFAIK those are dying. DLC's killing them. You buy (or rent) the disk, you only get like half the game. The rest can't be resold. Consequently, second-hand prices for disks seem to be dropping quite a bit, outside certain categories where that's less of an issue (Nintendo, kinda, and certain genres that still aren't that heavy on DLC like JRPGs). The dropping prices might but OK but with digital stores competing, and providing pretty good prices to anyone willing to wait for a sale, volume (both coming in, and being sold) is surely going down too, at least relative to total market size if not absolutely (and I suspect it's dropping absolutely, too).

Gamestop & friends seem to be muddling along through inertia, the larger-than-it-was but still-small retro gaming market (less Gamestop, they don't carry stuff that old), and selling non-game materials. And new games that come with DLC tickets and such. Not so much used sales or rentals (remember renting games from Blockbuster?)

It would have to be a disruptive model for sure...