PS5 and Xbox Series X|S resellers have been the bane of many gamers’ lives since the consoles launched, with most of the available stock falling into the hands of the profiteers. It’s now reported that console resellers in the US have managed to make $58 million in profit as a result.
According to Michael Driscoll, a data engineer who has been analysing the resale market, reseller profits have doubled since December 2020. Driscoll also estimates that PS5 resales have amounted to $143 million, leaving the sellers with a profit margin of $58 million [via VGC].
While we currently don’t have official sales data for the new-gen consoles, Driscoll has suggested that in the US, 10-20% of the consoles produced by Sony and Microsoft have been resold by private sellers.
These figures are worrying, but also provide us with some clarity as to why resellers are still consistently wiping out store stocks. If something continues to provide you with a profit, then it makes complete sense to keep on going (that’s capitalism, baby). That’s not to say that the practice isn’t deeply unfair to consumers, with the UK even going as far as to call for legislation to stop resellers from dominating the market.
Of course, all of this is possible thanks to the use of bots, which are used to buy products en mass. This means that consoles sell out at an inhuman rate, meaning unless you’re Johnny 5, it’s unlikely that you’ll beat resellers to the checkout. UK politicians have drawn comparison to these tactics to reselling event tickets, which also has legislation in place.
There’s only one way to stop resellers from doing what they do – don’t buy their stock. As long as they’re making a profit, it’s likely that they’ll continue to snaffle up PS5s and Xbox consoles until they’re no longer in demand.
As for when that will be, well, considering it’s now February 2021, those looking for a new-gen console could be in for a long year.
Shop With GameByte!
Don’t forget you can find some of these great games and more through the new GameByte Shop! The GameByte Shop is stocked up with the latest games, merch and accessories. We might even have a new-gen console or two! Find the shop here and sign up to our newsletter to be notified of our console drops. Please note the GameByte Shop is available for UK customers only.
Featured Image Credit: Microsoft