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.
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?)