Consoles Being Sold out is Not a Good Thing

There are two big reasons why both the Xbox Series X/S and PS5 have been sold out everywhere for months, with only occasional restocks here and there. 1. Scalpers creating artificial demand and 2. Some Covid restrictions limiting some production output, though I'm not sure how big of a factor the second one is.

Now I see a lot of fanboys on both sides of the battlefield touting how this is a good sign for Sony and MS, since that means both consoles are in high demand. However, this is NOT a good thing. Constant stock issues for both companies means that consoles aren't selling other than in short bursts when a retailer gets a restock, and no decent profit is being made from the hardware, and the sales stagnate- meaning neither side really "wins" the console war.

This is largely caused by scalpers mass buying the systems the moment they restock. So scalpers, do realize that this is only hurting the industry.

It’s not scalpers fault that people will pay more than double to buy a new console that’s in short supply. But if the console was readily available, scalpers wouldn’t be an issue. The blame is on supply.

Yeah it’s definitely not a good thing that scalpers keep buying up all these systems. When scalpers by these systems they don’t buy games to go along with those systems and that’s how these companies make their money. They also take away game sales that people who pick them up from them at these inflated prices. That’s money could have gone towards picking up games instead. This scalping bs has gotten completely out of control and something needs to be done about it.

There is a difference between demand and creating artificial demand. This wouldn't have been a problem if scalpers didn't mass buy the systems.

Also I would like to at some point this year like to purchase a damn GPU thank you.

Who are you even talking to? We know that console shortages aren't a good thing. Games need consoles in the wild to play them on. Plus, a console's main income is the software that's out there, as profits from hardware aren't always there at the jump, sometimes being sold at a loss to get it to a mass market price.

@goldenelementxl: Stated like a scalper. 🤣

Fanboys who think this is a good thing.

We knew supply was gonna be bad months before launch. The gamers bitching about pre-order difficulties and how fast they went out of stock let scalpers know the demand was through the roof. If these consoles had substantial stock for launch, scalpers wouldn't have paid any attention to these consoles. Scalpers didn't create the stock, they just benefited from it

Also doesn't help not being able to buy at retail.

Imagine trying to justify scalpers artificially making something more scarce. That’s some pretty interesting “logic” there. 🤦‍♂️

Scalpers are worse than ever. It's hard enough to get a console at launch but with these scalpers scooping these things en masse, they're more than just not helping the situation. It's only good for the greedy. It's not good for consumers or the companies. Less games, services and peripherals are purchased if there is no system to be had.

@Archangel3371: Either the affected retailers take action by restricting the number of consoles purchased by a customer or have anti-scalping laws that currently regulate the sales of concert tickets apply to consoles. For the latter, lawmakers need to be convinced why anti-scalping laws should apply to the sale of consoles.

Turned out that what was a criticism against Microsoft for its future output being cross-gen and on PC might be a decent model for success during the pandemic for growing Game Pass on existing Xbox userbase, existing 8th gen hardware inventory at retailers, and the PC market, while 9th gen hardware trickles out. Hopefully Sony too sees the limits in hardware production as reason to improve the PS Now service to help further monetize during the slow build, which would be good because competition in services like these will just benefit the consumers on both sides.

It's never too late for both MS and zsony to reward their patrons with priority access to these next gen systems. Give users who have existing XBLG or PS+ memberships, are active gamers who spend money, have verifiable accounts with achievements, online tracked activity, digitsl store payments and downloads, give these accounts at request a priority advantage. Smart too as other metrics can be factored, such as friend engagement and activity, which from a metrics perspective can likely gain an early edge by prioritizing people who play with long established friends, look at their cross game contact, and see advantage of potential buyers being influential in a social group to bring their peers with them.

rtx 3090 no stock either

Its actually really bad. I don't even care about the ps5 or x-series x i just don't even care if there sold out I'm not gonna look around for em maybe if i saw one in the store and it was an impulse buy. With those systems out of stock there not even in my mind right now good luck sony good luck microsoft im playing switch lite and my pc. Good luck to ya have a good one.

It isn't hurting the industry all that much because:

1) Scalpers only hurt Sony and, Microsoft if the consoles don't end up in consumers hands.

2) Most games are cross generation

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Chances are there's only a small percentage of consoles sold that aren't making it to actual consumers considering scalpers can't make money unless they sell consoles. They wouldn't scalp consoles if they couldn't sell them. So yeah, what Sony and, Microsoft are seeing is still pretty close to the actual demand for the consoles. They also have ways to know how many are reaching actual consumers. Ex. Sony knows how many unique PS5s connect to PSN (for any given reason).

I'm actually happy about the shortages. I tried to pick one up on launch day, but since then, my hype has dropped to zero and I'm more than happy waiting for the slim/pro redesign. Even then, I'm not even that excited for the slim/pro redesign and might not even get any console at all this generation. There isn't even 1 single game announced for this generation I'm even interested in anyways.

People don't seem to realize that software is what makes these companies money, so the systems being stockpiled in scalpers kitchens means no software is being bought by customers. If these companies don't do something about these douche bag scalpers, they'll bleed money.

im with you

don't tell @goldenelementxl the dude pre ordered ps5 x-series x and is subbed to both online's and i dunno what hes playing on all that crap theres no games and no exclusives on either one

@arkephonic: @ProtossRushX: You do know both new consoles play many of the previous gens games, and that many of those games offer performance and visual upgrades, right?

“I'm actually happy about the shortages. I tried to pick one up on launch day, but since then, my hype has dropped to zero”

Sounds like a defense mechanism to me...

Yeah but you said you own like 3080 gtx PC why would you play previous gen games on ps5 or x-series x over that? Doesn't make much sense to me. Are you playing some really old exclusives or whats going on and why do you need the online for those type of games still?

@ProtossRushX: I don’t own a 3080. I’m still on the 2080Ti.

I have friends and family that game on console so I will always play there as well as PC. My kids like poking around on the consoles too, which I allow because they aren’t touching the PC.

The “freebies” included with the console subscription services pretty much pay for themselves too. There’s been countless games I would have never tried if they weren’t included. Cloud saves and online multiplayer access are must haves for me.

I thought I saw you post a while back that you had bought a Xbox Series X?

and here I was thinking it was great I couldn't find an XSX anywhere...

on top of that . right now storage is some what a issue. but most games are back ported. wait till it hits full swing.... then you will see of a mass amount of posters about storage needs.

their going to realize cost is s total rip off

Supply is the main issue, constrained by Covid. That drives demand for scalpers, as people are seemingly willing to pay exorbitant prices... Thus we come back to restrictions on shipping/manufacturing due to Covid. So yes, being sold out isn't a good thing, and it is related to scalpers, but the pandemic is the driving issue. TBH, not entirely sure this needed a thread.

@lundy86_4: Exactly! The supply shortages are what is driving the scalping, not the other way around. If the demand didn’t provide scalpers the ability to double their investment, they wouldn’t buy up the consoles in the first place. And Xbox is out here telling folks the shortages could run through the summer. But it’s the scalpers fault... 🙄

And really, if you want a console bad enough, there’s more than enough help tracking restocks and sales alerts. It’s 2021, your phone has more than enough tools to help you buy a console

lol prob got sold to crypto miners lol

no reason to really get one anyway, just get the slim better version later.

Not exactly sure how it works but I think the profits level out eventually with or without scalpers.

With scalpers, the profits are just delayed.

Afaik, it's also no longer that expensive like a few weeks back.

Unless there are statistics on it, I really can't form an opinion. I doubt that most of people buying them are scalpers.

No over compelling reason to own either of them so I'm good until holiday 2021 when they will be plentiful. :P

No.

OP's viewpoint is flawed.

First, the demand is real. Don't assume if scalpers weren't a thing then everyone could easily get a next Gen console. Doing so would ignore history. Getting a PS4 or Xbox One was very difficult when they launched. The Wii? Forget about it. The demand is not artificial, it's real. Another way to look at it -- if Sony and Microsoft could magically make a million more units out of thin air, would they sell? Yes, they would.

Second, limited production. Has covid affected production output? To some degree. Has Sony made more PS5s in the lead up to launch than they did with the PS4? Yes, and the PS4 launch didn't have to contend w/ a global pandemic. There could be more production if it weren't for covid, but it's not likely to be much more.

You can blame Sony and MS for the lack of supply. Sure you can blame scalpers but the fact is most places only get a few consoles in at a time. Even places like Walmart and Target will only get 5 or 9 consoles in till w/e they get more. That makes it easy for scalpers to buy all of those copies.

Interesting way to look at it.

Precisely. I meant to make that a point in the post, but forgot about it.

Not like it matters. There is nothing on Ps5 or Xbox series X that is must play yet anyway. Maybe in a year or 3 lol.

Well I was strongly considering buying a Series S, but as it is sold out I bought a Switch, which I managed to find in stock. Now that I have the Switch, I am not sure I feel like spending the money on a Series S. Being sold out probably lost them a lot of sales over all. Maybe people would have bought them for Kung Flu but now that it's pretty much over they decided they don't need to waste the money anymore.

OK. Where? I mostly see people annoyed by not being able to get a console, and pissed that some asshole on ebay wants double the price.

You don't get your product, and the company doesn't get any money. Great.

That's not how reality works for most people.

Be interesting to see what the percentage of sales went to scalpers.

Come on, man, deliberately understocking retailers to create artificial scarcity thus driving up demand is one of the oldest marketing tricks in the book. I can't believe people still fall for it.

For me, I don't give a f**k. I'm mainly a PC gamer these days. I'm also not really interested in the current games on PS5.

I tried to buy both a PS5 and an Xbox Series X but couldn't find either. I found some Xbox Series S consoles but lol.