It’s no secret that I like video games. From meticulously placing individual trees in Cities Skylines, to plumbing the depths of ancient ruins in Zelda, to erecting castles in Minecraft, I love the digital gaming experience.
For many, the console is an inexpensive and accessible platform to satisfy their gaming needs: and with the excitement around new console offerings from Sony and Microsoft, one might feel tempted to purchase a new console. Unfortunately, those seeking a next generation console will find it impossible to acquire one at the recommended prices set by both Sony and Microsoft. The reason for this is simple: scalping.
Scalping is the process of purchasing a product in high demand and reselling the product at a significantly higher rate for a quick and lucrative profit. Scalping isn’t a new practice, and neither is the practice new to controversy. For example, in Pennsylvania the resale of tickets for large venues (concerts, football games, etc.) is illegal if the resale price of said tickets exceeds 25 percent of the tickets initial purchase price.
Unfortunately, anti-scalping regulations do not exist for other markets like electronics.
While–yes–console scalping isn’t uncommon following the release of a new console as someone lucky enough to be at Target when the console hit the shelves buys it and then flips it on eBay for a tidy profit, this year the sheer volume of consoles falling into the hands of scalpers is unprecedented.
In a recent PC Mag article, data engineer Michael Driscoll estimated roughly 15 percent of US Playstation 5 and Xbox Series consoles are currently being held by online scalpers. Driscoll also estimates that console scalpers made approximately $92 million in sales and $43.7 million in profits since September of 2020.
Many may wonder how scalpers get their hands on so many consoles—the same way Russian disinformation agents promote conspiracy theories and other disinformation on social media: bots. A bot (short for robot) is computer code that simulates human activity. Console scalpers use bots to tirelessly search the internet for consoles in stock and then automatically purchase the consoles within seconds. In other words, unless you are faster than a computer, good luck purchasing a new console.
Of course, scalping isn’t the only reason consoles are in short supply. Demand and production complications during a global pandemic also play a huge role in the console shortages, but scalping further compounds this issue.
Any search on eBay for a Playstation 5 will result in hundreds of listings for devices selling at upwards of $2,000—three times higher than the recommended price set by Sony. The supply—while not necessarily being enough to meet demand—is clearly there, but the demand is being artificially inflated by rapacious scalpers.
Such piratical behavior isn’t free-market capitalism: scalping consoles at exorbitant rates should be illegal. Regulations should be placed on the markup scalpers are allowed to charge, and using bots to complete online purchases should be illegal. By scooping up all available stock and increasing prices, scalpers deny gamers access to what they love.
I was fortunate enough to (out of sheer luck) discover an Xbox Series S in a local Target, and I am now the proud owner of that console. My advice to those seeking a next generation console would be to search physical locations for availability given they aren’t susceptible to instant bot purchases.
These are difficult times, and video games provide an excellent source of safe and socially distanced entertainment. Sadly though, scalpers keep this digital escape out of reach for many. Their practices are immoral, unethical, untoward in times like these. It is unacceptable that scalpers profit from the miseries of others, and that is why we must stop scalping.