Customers have a willingness to pay threshold. The price has to be adjusted accordingly. Scalpers can't just buy up all stock and demand more than what customers are willing to pay. You are fundamentally misunderstanding how pricing works. By your logic, why aren't scalpers demanding $5000?Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
The question is... Would customers be willing to pay 900$? Because if not, scalpers would get fucked at that point.Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
I don't think so. Look at PS3 or Xbox One and see what happens when you are too expensive.Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
Raise the price more.Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
Literally in the OP. Do you disagree that value is being provided?Value???? Where is that?
If it is a store policy and you are in violation then you are in the wrong. However, if store doesn’t put effort in enforcing their terms then they aren’t being compliant. So, actually, the main culprit here is the online retailer not the scalpers (assuming that they do have a policy against bot usage). But you are correct, scalpers do not affect the market, they are just a byproduct of scarcity.Yes but that is an online store issue, no?
They need to create mechanics to avoid that but they really care? They are selling the product after all.
Scalpers doesn't affect the online store or Sony at all... it doesn't affect the market.
Sorry, but this doesn’t make any sense. There is a thing called demand and a thing called offer. We are on the demand side, everyone wants a next gen. Sony and MS (with the help of online retailers) are on the offer aide and can only produce X units which is a few times lower than what “demand” is. Some people have spare time/bots set to search for surplus units. They get hold of these and sell them for a premium. There is still “demand” willing to pay for the premium. So what is wrong here? You should complain with Sony, MS, online retailers…. And the demand willing to pay extra for a luxury item. I have waited more than a year but I bought mine for retail price (directly from Amazon).Get the fuck outta here with that shit. It’s clear that there are surplus consoles out there with scalpers because you see the outrageous price they are charging them online.
The whole business model is to undercharge for consoles to get people buying more games so your whole argument is shot down right there. Console makers wouldn’t ever charge what they are ‘worth’.
Scalping of any kind is horseshit.
Anyway, I’ve got more important things to do like stare at walls than read this madness.
Thank you Scalpers for charging me more for a product I want that I might otherwise be able to find cheaper from a retailer. What would we do without you?Literally in the OP. Do you disagree that value is being provided?
Scalpers are essentially making use of a market failure - namely Sony/Nvidia/AMD/etc. failing to increase the prices of their products even though the supply can't meet the demand (due to a chip shortage). The fact of the matter is that there isn't enough products at MSRP for everyone who'd like one, even if you eliminated all the scalpers who buy up the products at MSRP. So either you discriminate by price (which scalpers do) or by time/luck (hitting F5 at the right time on Amazon, checking Twitter bots all day). I don't understand why the latter is more virtuous than the former. Frankly, when it comes to luxury products I prefer an auction over a lottery.Scalpers buy products at MSRP, and redistribute it to those who are willing to pay more for them, thereby providing value as the recipient doesn't have to waste their time following Twitter bots day and night. They don't affect supply because they're obviously incentivized to resell. They do affect demand as the demand for a $1500 RTX 3080 is lower than for a $800 3080 but really, that's how price discovery works. If your price is such that the product is out of stock all the time, you've priced it too low.
If you hate scalpers, you should beg for the manufacturers to raise the console and GPU prices to their actual market value (they probably don't do it for brand perception reasons or otherwise). Currently, the products are simply priced too low.
edit: This is neither clickbait nor cringe lol. I've responded to literally everyone in good faith. I'm just correct and I'm sorry it hurt your feelings.
Scalpers buy products at MSRP, and redistribute it to those who are willing to pay more for them, thereby providing value as the recipient doesn't have to waste their time following Twitter bots day and night.
There's literally zero value in playing with time, it's essentially deeming it profitableWould you acknowledge that there is insufficient supply for the RTX 3080 at MSRP? That is obviously the case. Let's say I want an RTX 3080 really bad. What options do I have? I could
Provided I have the money, option 3 is by far the most appealing to me. I don't have to wait and I don't have to waste my time on checking stores and bots. Do you acknowledge that value has been provided? The scalper essentially secured me a product and I'm paying them for their service.
- wait until they're available (which could take years)
- Check Twitter bots and other sources that notify me when an RTX is in stock
- Pay a premium and get the product right away
I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?Thank you Scalpers for charging me more for a product I want that I might otherwise be able to find cheaper from a retailer. What would we do without you?
You forgot to plug your Ebay account.
I got a ps5 on day 2, and work 12 hour days with constantly changing shift patterns.I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
If you disagree that they provide value, you're just braindead. I won't even debate this anymore, it's literally in the OP and I'm just correct. There's isn't a single viable argument against the fact that they provide some value (that you personally may or may not value). Frankly I'm not sure how some of you guys scrape together the brain capacity to turn your computer on on a daily basis.Christ you're so fucking dumb.
Scalpers dont provide value. Theyd provide value to people by not existing, because the product would then be available.
Theyre just a useless middle man.
Cous nobody would pay $5000 for a $500 console. When you ask to much you would sell nothing...Customers have a willingness to pay threshold. The price has to be adjusted accordingly. Scalpers can't just buy up all stock and demand more than what customers are willing to pay. You are fundamentally misunderstanding how pricing works. By your logic, why aren't scalpers demanding $5000?
CorrectCous nobody would pay $5000 for a $500 console. When you ask to much you would sell nothing...
If you disagree that they provide value, you're just braindead. I won't even debate this anymore, it's literally in the OP and I'm just correct. There's isn't a single viable argument against the fact that they provide some value (that you personally may or may not value). Frankly I'm not sure how some of you guys scrape together the brain capacity to turn your computer on on a daily basis.
If all these manufacturers raised their price to the products' market value then scalpers cease to exist. They cannot demand more than what the market will bear. You are wrong.If Sony, XBOX, NVIDIA, and AMD raised their prices, then scalpers would also raise their prices. Scalpers aren’t taking advantage of the market value, they’re taking advantage of desperate consumers.
No, it is possible to get a PS5 or an RTX 3080, it's just extremely time consuming and impossible for very busy people. Going to a scalper is more convenient.People don’t buy from scalpers because it’s “convenient” or “time saving.” People buy from scalpers because it’s the only thing available. Walking into a grocery store and picking up a new console for half the price a scalper is charging is as convenient as it gets.
Except the demand outstrips the supply so you can't do the latter, with or without scalpers.Use a scalper cuz I don't have the time?
Yes, its much quicker to find an underground market and pay 2x the price than log onto my existing Amazon, Target, Microsoft, Walmart accounta and add it to the cart and complete payment for MSRP.
And there is the problem, Sony and MS cant produce more consoles because AMD cant produce more chips. Raising the price of the consoles would have no effect. The scalpers still would buy them and would take a little les profit, so the scalpers would make profit anyway.Raise the price more.
Let Sony and Microsoft compete with the scalpers.
At least the former can supply more consoles. That will force scalpers to lower their prices.
And that, in turn, will force Sony and Microsoft to lower their prices as well.
And then the cycle begins anew, steadily lowering the price until it reaches equilibrium.
While I can agree, at the end of the day it's their money and they should be free to use ot however they want.The only thing I hate more than scalpers are fucktards paying scalper prices. They’re the ones they need to be tarred and feathered.
Scalpers only exist in a realm where products are mispriced. Unless you have one scalper buy up all the stock and thereby kill all competition, scalpers can demand what people are willing to pay given the supply, and not more. People claiming it's an "artificial increase" in price are just wrong, it's literally an organic way of price discovery, much like an auction.And there is the problem, Sony and MS cant produce more consoles because AMD cant produce more chips. Raising the price of the consoles would have no effect. The scalpers still would buy them and would take a little les profit, so the scalpers would make profit anyway.
The market value for a new console is $500, not what the scalpers are charging. You know that, right?If all these manufacturers raised their price to the products' market value then scalpers cease to exist. They cannot demand more than what the market will bear. You are wrong.
No, it is possible to get a PS5 or an RTX 3080, it's just extremely time consuming and impossible for very busy people. Going to a scalper is more convenient.
You make no sense at all, the thing is is that scalpers can set up massive buyouts instantly which you wouldn't be able to do physically or whatever else and bypass the entire checkout systems online in order to redirect all the products toward them so they can make a profit while spinning it like you're doing right now.I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
The value is just on them making a profit, everything else is irrelevant. Paying more for the uncertainty of being ass fucked or not should a rma enters the equation is where the value is for the customer. That and undervaluing their timeIf you disagree that they provide value, you're just braindead. I won't even debate this anymore, it's literally in the OP and I'm just correct. There's isn't a single viable argument against the fact that they provide some value (that you personally may or may not value). Frankly I'm not sure how some of you guys scrape together the brain capacity to turn your computer on on a daily basis.
No, this isn't true. The market value is governed by what people are willing to pay, not by the arbitrary price the manufacturer sets. Put your PS5 on ebay for 1 Dollar and see where that auction goes. That right there is the product's market value.The market value for a new console is $500, not what the scalpers are charging. You know that, right?
Scalper cannot demand more than what people are willing to pay. That was my statement and it's (pretty much tautologically) true. Currently, a PS5 costs $500. The market value (or ebay price) is approximatly $700. That is, the maximum price customers are willing to pay for it given the current supply. If Sony increased the price to $600, scalpers would still exist because they can still make a profit. This is similar to the economic principle of arbitrage. If Sony matched the market value of the product, then scalpers would cease to exist because they cannot demand more money as customers aren't willing to pay above the market value, which Sony is already pocketing.Scalpers can absolutely demand more money than they already are. What proof are you basing these opinions on?
You are missing a crucial thing: They would have been available at MSRP to those who had the time to be present during the time when the product was in stock. If I'm a full time employed individual, I'm probably out of luck.Scalpers secured hundreds of thousands of consoles and GPUs. If they didn’t, those products would have been available for customers to buy in the first place.
They don't fix the shortage. Scalpers secure you a product in a heated, low supply market without you having to waste time searching a product.You act as though scalpers fix the shortage problem. The fact of the matter is there is a limited supply. Scalpers only make it easier for the desperate to buy a product. I’m guessing that was you and this thread is your way of processing what you felt like you had to do.
Can you acknowledge that the supply currently outstrips the demand? YesI think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
Both Xbox and PlayStation stated that they sell consoles at a loss on purpose to get customers into their ecosystem. That’s how the market value of consoles are governed. That is a fact.No, this isn't true. The market value is governed by what people are willing to pay, not by the arbitrary price the manufacturer sets. Put your PS5 on ebay for 1 Dollar and see where that auction goes. That right there is the product's market value.
Scalper cannot demand more than what people are willing to pay. That was my statement and it's (pretty much tautologically) true. Currently, a PS5 costs $500. The market value (or ebay price) is approximatly $700. That is, the maximum price customers are willing to pay for it given the current supply. If Sony increased the price to $600, scalpers would still exist because they can still make a profit. This is similar to the economic principle of arbitrage. If Sony matched the market value of the product, then scalpers would cease to exist because they cannot demand more money as customers aren't willing to pay above the market value, which Sony is already pocketing.
You are missing a crucial thing: They would have been available at MSRP to those who had the time to be present during the time when the product was in stock. If I'm a full time employed individual, I'm out of luck.
They don't fix the shortage. Scalpers secure you a product in heated, low supply market without you having to waste time searching a product.
Even if AMD produces only 10 chips a month for both consoles, scalpers don't produce the machines.And there is the problem, Sony and MS cant produce more consoles because AMD cant produce more chips. Raising the price of the consoles would have no effect. The scalpers still would buy them and would take a little les profit, so the scalpers would make profit anyway.
Why do you value the happiness of someone who camped in front of a store higher than someone who works full-time and doesn't have the time to do this, but does have the money to pay a premium in a secondary market? The latter individual put his labor/money into getting a PS5, the former used his time as a resource. Why is one better than the other? They're both "end consumers", that's not a distinguishing factor.Can you acknowledge that the supply currently outstrips the demand? Yes
Do you understand there isn't enough consoles and GPUs for everyone? Yes
Why is it that distributing items by time investment is more virtuous than by price? Because the people camping out are the end consumer. They are getting it for themselves not to make a profit off of somebodies hobby.
I don't oppose either business model. I think preying on people who are prone to a gambling addiction is unethical (especially when a game targets minors), but if you are of a sound mind and you decide that the XP booster is worth your money, go for it. You should absolutely be allowed to make, what I consider suboptimal, decisions in a society. Not sure when the gaming sphere turned into the Soviet Union.Seriously tho time as value is the same logic than game companies selling xp boosters while obviously padding their games, and again freemium games forcing you to pay in order to be satisfied with whatever you got in mind if you're not patient enough.