There's no profit in selling new games or movies as a small retailer. In fact, you can usually buy games and movies cheaper on sale from Best Buy than you can from a distributor. Used games and movies are really the only area a small business can turn a profit in, and for that you need an active trade base and you need to find a balance between giving fair trade-in prices and making a large enough profit to stay in business. Believe it or not, there's a good reason chains like Game Crazy give 25 cents for an N64 game and charge $20 for it. Older games tend to collect dust on the shelves, and even though you may eventually sell the game at $20, having it on display in your store for 2 years puts the actual cost of the game to you at around $19.90 when you add in 2 years of overhead and shelf space.
I've been in the comic book retail business for over a decade now, which is very similar to the used video game market as we buy, sell, and trade an item that is both collectible and has a practical entertainment value for non-collectors.