Scalping has affected consumer-focused businesses for longer than many people can remember. However, many people believe that the practice only affects live events, such as sports games and concerts. That isn’t the case, as Sony and Microsoft can attest. According to a recent report by Tom’s Hardware, scalpers got their hands on 60,000 new-generation consoles.
These would subsequently be resold on eBay, Amazon, and other platforms. Even if some of the consoles remained unsold, the scalpers were able to make quite a lot of money. The average price of the relisted PlayStation 5s, for example, was $1,021. Prices have continued to go up, with the consoles being listed for an average of 170% of their original price.
Perhaps the hardest-hit of these is the PS5 digital edition; in the days after release, it was relisted at a 255% markup. It currently sits at about three and a half times its original price.
While buying the Xbox Series X or PlayStation 5 at such a price isn’t ideal, it’s easy to see why people would do it. Both consoles were difficult to purchase from appropriate stores. While some of these was because of the scalpers, much of it was because of faults in the supply chain. With few of the consoles available from retailers, potential buyers are left with nowhere else to turn.
Even worse for parents whose child is set on one for the holidays. Naturally, there are still a few legitimate places that people can buy the Xbox Series X or PlayStation 5. While this might mean some additional waiting time, a legitimate outlet would have either console available for less than half the relisted price.
Industry experts, employees, and even Sony and Microsoft themselves would prefer that approach. It could also mean that scalpers would be forced to drastically reduce prices just to offload units. So, a win-win for everybody who isn’t scalping.
PRO GAMER MEDIA LLC - PRIVACY POLICY
Pro Gamer Media LLC ("Pro Gamer") is committed to respecting your privacy. Please read the following policy to understand how your personal information will be treated. This policy may change from time to time so please check back periodically. This policy will let you know the following:
1. What personally identifiable information is collected from me?
2. What are cookies and how they are used by Pro Gamer?
3. How is my information used?
4. Who is collecting my information?
5. With whom will my information be shared?
6. How can I access, update or delete my information?
7. What does “opt-in” mean?
8. What else should I know about my privacy?
9. Other legal notices.
1. What personally identifiable information is collected from me?
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Membership Agreement
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