{"id":65117,"date":"2022-04-25T16:40:00","date_gmt":"2022-04-25T20:40:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=65117"},"modified":"2022-04-26T16:40:34","modified_gmt":"2022-04-26T20:40:34","slug":"ps5-scalpers","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/ps5-scalpers\/","title":{"rendered":"The Real Cost of a PS5: How Scalpers Own the Market"},"content":{"rendered":"\n

Why are PlayStation 5s so hard to get right now? How are online scalpers contributing to the PS5 problem?<\/p>\n\n\n\n

The PS5 was released in November 2020. However, a large portion of the gaming community has yet to get their hands on one. This is due to a number of factors: COVID, the microchip shortage, and most frustratingly, scalpers.<\/p>\n\n\n\n

Here\u2019s how PS5 scalpers are contributing to the console shortage.<\/p>\n\n\n\n\n\n\n\n

Overview of the Situation<\/strong><\/h2>\n\n\n\n

Every time a new console is released, customers scramble to preorder it. If they don\u2019t, they know they\u2019ll likely have to wait for months after the holiday season for the consoles to be restocked again. That might have been the case with the PS5 if it hadn’t been released during a pandemic.<\/p>\n\n\n\n

There were many factors that added up to make the perfect storm for the PlayStation 5\u2014the two biggest being that the pandemic caused Sony employees to work from home<\/a> and the global microchip shortage<\/a> limited the number of PS5s being produced. Thanks to these two issues, Sony has a limited number of consoles. This problem was aggravated by the fact that PS5s were in very high demand. Perhaps it\u2019s because customers were stuck at home with nothing to do, but PlayStation 5 preorders quickly outnumbered<\/a> PlayStation 4 preorders, sending the demand for the consoles through the roof.<\/p>\n\n\n\n

And, if we learned anything from the sneaker bot situation<\/a> (computer programs designed to purchase high-demand, collectible sneakers as soon as\u2014or before\u2014they\u2019re released online), if a product is in high demand, scalpers will take advantage of it. And the PS5 is no exception. <\/p>\n\n\n\n

What Is Scalping?<\/strong><\/h2>\n\n\n\n

Before we jump into a conversation about PS5 scalping, we should probably explain exactly what scalping is. A scalper is someone who buys large quantities of in-demand items, such as collectibles, event tickets, or in this case, PS5s. Their goal is to profit off of supply and demand\u2014they\u2019re betting on the fact that these items will sell quickly and will be hard to find so they can swoop in and sell them at a higher price than they\u2019re worth.<\/p>\n\n\n\n

You\u2019d think that this type of con-artistry would be illegal, but in most cases, it\u2019s not<\/a>. Some states have specific event ticket scalping regulations, but for the most part, scalping is considered a consequence of the free-market system<\/a>. As long as the products are being legally sold and purchased, there\u2019s nothing stopping scalpers from selling an item at double or more than the price they paid. <\/p>\n\n\n\n

Why Is Scalping a Problem?<\/strong><\/h3>\n\n\n\n

It’s not new and it’s not illegal, so you may be wondering why this is even a problem. Improvements in technology have made it easier for scalpers and online sales have brought out more scammers looking to cash in on the high prices.<\/p>\n\n\n\n

Jacked-Up Resale Prices<\/strong><\/h4>\n\n\n\n

PS5 scalpers are using bots to purchase loads of consoles as soon as they become available online. Some PS5 scalpers have even been seen with carloads of consoles<\/a>, infuriating those who have been trying to get their hands on one for years.<\/p>\n\n\n\n

The scalpers are then selling them for double or more than the <\/a>retail cost (that\u2019s over $800, and in some cases, they sell for over $1,000). Consoles are already expensive as it is\u2014the retail cost of a PlayStation 5 ranges from $399 to $499\u2014so the price hikes from scalpers make the consoles even less accessible. <\/p>\n\n\n\n

Scalpers Lead to Scammers<\/strong><\/h4>\n\n\n\n

If you\u2019ve decided to just bite the bullet and buy a PS5 from a scalper online, wouldn\u2019t you buy the $550 one over the $880 one? That\u2019s what a lot of people are choosing to do, and they\u2019re suffering for it. PS5 scammers are taking advantage of the scalping situation in deplorable ways<\/a>. Some are sending out boxes with other items in them (such as bricks), some are tricking buyers into buying photos of PS5s<\/a> by hiding the details in the fine print, some are selling empty PS5 boxes on the street, and some are downright stealing the money and running. <\/p>\n\n\n\n

Since scams have been a huge issue, largely thanks to PS5 scalpers, it\u2019s safest to wait until you can purchase one directly from a retailer\u2014even if it may take much longer.<\/p>\n\n\n\n

Is Sony Being Affected by PS5 Scalpers?<\/strong><\/h2>\n\n\n\n

You might think that scalpers actually help <\/em>rather than hurt <\/em>companies, right? Scalpers purchase all of a company\u2019s products right away\u2014isn\u2019t that great for sales? Yes\u2026and no.<\/p>\n\n\n\n

Sure, PS5 consoles are selling immediately, but that doesn\u2019t mean they\u2019re being played. In fact, one source estimates that just about one in three consoles<\/a> have sold a game, while another estimates that about 25% of consoles sold<\/a> are not in use. What does this mean? It means that despite selling all of their PlayStation 5 consoles immediately, Sony is not receiving a continued return on these devices (they receive a percentage of every game sold for their consoles).<\/p>\n\n\n\n

This isn\u2019t just an issue for Sony, it\u2019s an issue for game developers as well. If fewer games are being purchased, then the studio makes less money, then it has less money for future game development. Luckily, it doesn\u2019t seem to have hit that point yet, but that doesn\u2019t mean it couldn\u2019t be an issue in the future.<\/p>\n\n\n\n

Can PS5 Scalpers Be Stopped?<\/strong><\/h2>\n\n\n\n

Both retailers and Sony are trying their best to deter and outsmart scalpers and PS5 scalper bots. Many retailers have imposed a \u201cone console per customer\u201d rule, but others are getting more creative on top of that. One anti-scalper method being used in Japan<\/a> is stickers\u2014some retailers are writing the purchaser\u2019s name on a sticker and putting it on the box to remove anonymity from the purchasing process. Some online retailers are using captcha<\/a> to weed out bots, some won\u2019t release their restock dates, and some are even writing on the new consoles<\/a> to deter sales. <\/p>\n\n\n\n

Of course, these methods may only put a dent in PS5 scalper efforts\u2014but any progress is better than no progress, right?<\/p>\n\n\n\n

So, How Can You Buy a PS5?<\/strong><\/h2>\n\n\n\n

As mentioned earlier, the only real safe way to avoid PS5 scalpers and scammers is to purchase one directly from a retailer. But that\u2019s easier said than done. So here are some methods for purchasing a PS5:<\/p>\n\n\n\n