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Death of the PS3 Grey Market

kotaku.com — The story tracks the death of the Playstation 3 grey market on both eBay and in retail stores. According to the story, the best day to sell the PS3 was a day before the launch.

Who dugg this? Made popular Dec 29, 2006

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  • hchaudh1, on 10/12/2007, -6/+54Good! Serves the scalpers right.
  • dgcrazykid, on 10/12/2007, -8/+50well, I think that the PS3 will be what the PSP is today: mediocre sales, and slowing down.
  • dunezone, on 10/12/2007, -2/+21Its a great read, he did some good work looking into the numbers. In hindsight to the situation its quite clear why the PS3 took a huge hit early on. It had high competition from low priced competitor that was getting alot of media attention(Wii), word to mouth, and good reviews. It had competition from a 2nd power house console that was doing fairly well with a lower price(xbox360), a year head start, a decent game library, and great online support that worked. The PS3 was hit by a huge price tag, and not so stellar reviews. It was definitely not the same situation as in 2000 with the PS2, it had no competition, a reasonable price tag for what you bought(game console + dvd player), and was getting some kick ass reviews and media attention in its favor. And in all honesty, alot of people saw this, especially people in marketing cause it had almost every variable against it.
  • SOMETHINGWAFFLE, on 10/12/2007, -3/+21Why would you pay $5 when you're at a dollar store?
  • trogdor282, on 10/12/2007, -1/+19My idiot housemate from college bought two PS3's on launch day for $2500 each off eBay, hoping to scalp them for even higher at Christmas. I've been laughing at him ever since. Pwn3d!
  • pureliquidhw, on 10/12/2007, -9/+22WOW! You're an asswipe!
  • humperdeath, on 10/12/2007, -1/+13Too bad they got their money back- just returned to the store with receipt.
  • Cyanbane, on 10/12/2007, -2/+14Good research, Good read.
  • chriskzoo, on 10/12/2007, -3/+13Hey, if starting an auction at $0.01 and letting the market rule makes me an asswipe - so be it!
  • Jiffylush, on 10/12/2007, -0/+10Sony isn't run by a Bush appointee, they are just treated on Digg like they are ;)

  • inactive, on 10/12/2007, -0/+9Not looking at all promising though, with a heap of other exclusive stuff that was once sony only, being released on xbox.
  • rockingrhino, on 10/12/2007, -0/+9Very good article. Well worth the read and a lesson in good old capitalism.
  • djSyndrome, on 10/12/2007, -3/+12This is just a suggestion, but perhaps you could put down the PS3 controller just long enough to obtain an education for yourself?
  • inactive, on 10/12/2007, -0/+9Isn't the best day to sell ANYTHING a day before the launch?
  • Lobut, on 10/12/2007, -0/+7Well written. Honest research. I like.

    I think most people will enjoy this article be they Sony-hater or Sony-fan. It's about the scalpers who have done nothing but remove supply away from gamers. There were plenty of precursors to this and I think that a fair number of people got what they deserved.
  • zachgc, on 10/12/2007, -0/+7@thecheatah
    Uggg... I'm having flashbacks of working at EB in Brooklyn. Only now I don't have an empty game box to throw at you.

    Edit: Are you 12?
  • Jiffylush, on 10/12/2007, -3/+10Did half of you posters read the article at all?

    Basically what it says is most stores still don't have ps3s and have only had a few returns which have sold almost instantly. Sounds like you need to add $500 worth of unwanted games to keep them in stock.

    I love how the ps3 being out of stock is bad for sony, and the ps3 being in stock is bad for sony.

    How about we take a step back and realize that the PS3 is a fairly expensive video game and not a direct personal attack on the manhood of anyone who bought a 360 or an HD-DVD player.
  • dunezone, on 10/12/2007, -0/+7I didn't mention that aspect, which alot of people miss, and thats time. We have no clue what the long term plans are for Sony, Microsoft, or Nintendo. But what we do know is this, Sony won the last two "wars", they have an idea of what they are doing in all respect cause they showed it to us before. Microsoft, although a relatively new player has some massive titles, a year head start, several years head start for developers, and we know it has a killer game/games coming soon. And with Nintendo, well you have their first party titles, which in all respect have showed time and time again they are amazing, and show the test of time, and have survived this long.
  • Denver80203, on 10/12/2007, -0/+6Write like that and expect an ounce of respect?
  • rdrr, on 10/12/2007, -0/+6lol...

    Yes this is true for bf/gf level, but if you are unfortunate enough to be married, permission is a must.

    **quietly looks for balls in purse**
  • DreadPirateWes, on 10/12/2007, -1/+7Bah whatever. If people are stupid enough to pay it let them. It's not his fault for seeing an opportunity and going for it. There will always be some deadbeat corporate dad who wants to buy his kid's love and be willing to pay through the nose for it. If I'd had the cash I would have done the same thing.
  • epistemological, on 10/12/2007, -0/+6Learn 2 English
  • Aiwanei, on 10/12/2007, -3/+9Actually it was never supposed to be that close if you actually consider the jump that ps2 had on the other platforms (lets not count dreamcast, though it was my favorite of last generations.) The only thing that may have been close is game cube and the new comer to the console market the microsoft xbox. PS2 clearly had a well defined lead and with Nintendo's lack of third party support and the unproven microsoft really made it a clear winner in regard to sales for the ps2.
  • Barr08, on 10/12/2007, -1/+7"Basically what I'm saying is, the Wii rocks and so does Rocky Balboa. "

    what? how does that have anything to do with this?
  • BabyBrumak, on 10/12/2007, -2/+7@jwyles

    While the PS3 might be quite hackable, I have yet to see any real proof that its hardware is actually better than the XBOX 360's.

    You asked why there is so much PS3 hating going on. I think it has to do with all the ***** that Sony was talking about for the past few years without delivering on their promises. Their ad campaigns have primarily focused on cutting down the competition, insulting others, and even blatant racism (white PSP anyone?).

    While their products may be quite good and they may also develop an excellent game library, I CANNOT respect a company whose whole approach is insolent and downright offensive. I loved the PS2 and everything it had to offer, but since then I've been losing faith and respect for Sony.
  • OpCzar, on 10/12/2007, -0/+5As much as I hate scalpers, this is not a grey market. Really, look it up.
  • Hoffer, on 10/12/2007, -2/+7I know a guy on a forum I frequent that sold his PS3 the day before it launched. He got $2,250 for it. Other people on that forum were trying to decide when to sell theirs. They all decided to wait until they had it in hand. None of those guys that waited got over $1,200. The main reason being they had set reserves around $1,800. Some decided to hold on in hopes of getting back up over 2 grand. They didn't even get $1,000 for it. There were still people buying PS3 two weeks ago expecting to retire on the sale. All of them returned the PS3 after finding out they'd loose money on the sale.

    Personally, I'm glad it happend. There were plenty of people that would have bought the PS3 at $600. Instead, it sat in some guys closet as he tried to get as much money as he could on eBay.

    One guy at that forum got his dad and brother-in-law to stand in line with him for PS3s. He was going to cut them in on the profit and buy a HDTV for himself. Between the three PS3s, he didn't even make $1,000. :-)
  • BabyWookie, on 10/12/2007, -2/+6bury
  • dagamer34, on 10/12/2007, -0/+4If Final Fantasy were to jump to the 360, 1/2 the people planning to buy a PS3 would now buy an Xbox 360.
    If Metal Gear Solid 4 were to jump to the 360, the OTHER 1/2 of people planning to buy a PS3 would now buy an Xbox 360.

    It's really bad when the success of an expensive console depends on only 2 games. If either one of those 2 were to announce a release on the Xbox 360 (even if there were a 1 year delay for the Xbox 360 release) the PS3 would be dead. Period. The shift of one would cause other companies to re-evaluate their commitment to each system.

    Yo bet Sony better be paying Konami and Square-Enix a ***** to keep that stuff exclusive otherwise the PS3 is going to be the fastest boat to sink since the Titanic!

    Edit: Maybe the 3DO and Virtual Boy sunk faster... but people have long forgotten about them. :P
  • hchaudh1, on 10/12/2007, -1/+5I read the article and I think its a good read. I think you are just surprised at the fact that a pro-PS3 article made the front page. Not everyone is RABID XBox/Wii fan who would jump at all chances to discredit the competetion. Some people actually think before they post.
  • hcl40u, on 10/12/2007, -0/+4Hey at least Europe will have plenty of PS3s available when they finally launch there.
  • pantone354, on 10/12/2007, -0/+4I kinda feel like the PS3 is gonna be a sleeper system and once some great titles come out and developers learn to work with what's available (graphic wise) people will be drooling over the the PS3 again. Luckily this time they'll be in stock. I give it a year and a half and then you'll be hearing a lot of PS3 love! Plus HDTV should be a little cheaper for the masses.
  • b0neman, on 10/12/2007, -0/+4This is a big fat DUH! It isn't as if Sony will never make any more PS3's after the launch date. You'll be able to buy PS3's for at least 5 to 10 more years which is why this grey market thing was such a gamble in the first place. As was mentioned above, the free market slapped all the scalpers in the ass on this one. Sure, there was the odd 100 or so that made a bucket full of money on reselling this box but for the most part, the market would not bare $1000 to $5000 for a freaking **TOY**. I could buy a used car or put a down payment on a condo or house with that kind of money. I should be able to browse the Internet on that box with a browser of my choosing for a $1000 to $5000.

    I'm sitting this one out Guitar Hero controller plugged into my dusty PS2 and will wait till the dust settles on this next generation stuff. I was kind of down on the PS3 based on all the web noise and wanted to get a Wii but I'm not so sure yet. It took a while and Vice City before I got my PS2. Sony will make more PS3's more titles will be coming for it soon enough. Hang tight Sony fanboys, this race is not a sprint, it's a marathon.

  • BabyWookie, on 10/12/2007, -0/+4"Too bad they got their money back- just returned to the store with receipt."

    Not exactly true. Unfortunately, they also got stuck with eBay fees and *****. A friend of mine lost $180 with his two 20GBs. 5 eBay auctions with Gallery Featured and other expensive features. A few of the auctions didn't reach reserve and then we got a Nigerian ***** and one non-payer. Keep gloating.
  • BabyWookie, on 10/12/2007, -0/+3Good for you. Yeah, the eBay prices for the 360 crashed really bad right before xmas too.
  • hchaudh1, on 10/12/2007, -4/+7Just like people who buy $300-$400 music players, $1000+ TV's, $100 sneakers. Not being wealthy does not mean you should not be able to enjoy yourselves.
  • thetango, on 10/12/2007, -2/+5Hope I don't get flamed/buried for this.... I've played Wii, Xbox, and PS3. And when all was said and done I decided that PS3 was the way to go.

    I'm one of the thousands (maybe even tens of thousands?) who purchased a PS3 on ebay because I was unable to find one in the stores. I purchased mine on ebay on December 20th for $685 [1] (which included Talledega Nights and overnight shipping). I watched prices drop dramatically throughout the three weeks preceding Xmas. If I had purchased the system in, let's say, Circuit City I would have paid about $650 with taxes.

    Admittedly, I wasn't in a rush because I didn't think there was going to be a flood of video games released for PS3 so I was willing to wait. So my patience lead to me ending up with a good deal, IMO.

    I was interested in the PS3 for a variety of reasons -- motion sensitve controller [2], HD video, and the INTERNAL Blu-ray DVD player [3]. I look at the PS3 as part of my entertainment system, not just a gaming console. (jake13jake asks if HD is worth $250+? ... I say "Yes, having played the Wii, PS3, and Xbox, I would say it is worth the extra $250.")

    I also think making the box similar to a conventional PC was a good way to go -- USB ports lead to the possibility of external storage, etc.. USB ports allow the easy usage of a keyboard :). IMO, Sony did some small things really well.

    I like the idea that Sony expects us to upgrade the hard drive on our own :). That's a brilliant idea and I'm glad they (Sony) think we (geeks, nerds, etc.) are smart enough to actually replace a hard drive.

    Having said that, I also will nitpick the PS3 -- it's damned hot when it's on. REALLY REALLY REALLY HOT! And I hate "touch sensitve" switches. They tend to break after a while. What's wrong with a regular on-off switch?

    [1] Thirty-five dollars for overnight shipping ain't too bad -- but I think the guy who I purchased the console lost money when shipping was calculated in.

    [2] Some reports are saying that the motion senstive controller of the PS3 "will" has similar capabililties to Wii controllers. That remains to be seen of course... but my feeling is that with the success of the Wii, Sony will push motion sensitive play in newer games.

    [3] I will point out, as many others do, that the Xbox 360 HD-DVD player is an external drive. I think that this is singularily the crappiest thing about the 360 :(. It probably would have been my preference had Microsoft seen to "repackage" a new version of the Xbox 360 with the HD-DVD drive built in...
  • DreadPirateWes, on 10/12/2007, -0/+3http://en.wikipedia.org/wiki/Retard
  • DreadPirateWes, on 10/12/2007, -2/+5Ha! I'll show you...I'll digg you up!
  • BabyWookie, on 10/12/2007, -1/+4Hah. Congrats man. The people calling you an "asswipe" really wish they could have made as much money that fast. Jealous little bitches. :)
  • PhantomRogue, on 10/12/2007, -0/+3Sony doesnt make plasma tvs. Only DLP and LCD (Wega and Bravia respectively). Both of which are among the best in their respective markets.
  • TangentThought, on 10/12/2007, -0/+2"Good! Serves the scalpers right."

    They've learned from how much they could make on the xbox360 launch, and this is what happens when they try to capitalize on that.
  • spokenrope, on 10/12/2007, -2/+4This is a lesson that I learned last year with the Xbox 360. I figured (incorrectly) that prices would spike right before Christmas. So, I put my PS3 up on ebay the same day that I got it for a tidy profit. Hate away.
  • augmental, on 10/12/2007, -0/+2Sony does not put out any DLP televisions. You are confusing the SXRD model which is a version of LCOS technology. Sony used to manufacture Plasmas, now we just get the Trinitron CRTs, Wega and Bravia LCD and the SXRD.
  • Kagnew, on 10/12/2007, -0/+2 “EXCESS PROFITS BREEDS RUINOUS COMPETITION”
    It's why the free market works.
  • inactive, on 10/12/2007, -6/+8@slaystench:

    I completely agree with you there. I do not understand the PS3 hating that is happening of late. The PS3 is a excellent piece of machinery that is highly customizable (hackable) with superior hardware. Despite the whole BluRay/HD-DVD stir going on I am sure the PS3 will become the formidable console middle of 2007 once the game developers start making the shift to high definition game play and the public has had time to saturate the upfront cost of the PS3.
  • Korexz, on 10/12/2007, -2/+4Wow, look at me get dugg down for using logic... ouch...
  • DrGamez, on 10/12/2007, -2/+3"I like the idea that Sony expects us to upgrade the hard drive on our own :). That's a brilliant idea and I'm glad they (Sony) think we (geeks, nerds, etc.) are smart enough to actually replace a hard drive."

    Then couldn't they have saved us a ton of money and offered the Blu-Ray player separate for us "geeks" to install?
  • inactive, on 10/12/2007, -2/+3WOW more PS3 ***** lies even if it were true how is 724 dollars for a system bad???? I mean i think they made their QUOTa just fine with what little systems they had in a shirt period of time say what 3days in total including Japan. Give it up the PS3 was selling for like 3, 000 and higher in some places on Ebay and people were buying them like hot cakes !

    They were still the unattainable system that everyone wanted to get and still is so ***** off with the Ps3 bashing and get a life !!! They made there Million mark 2 weeks ago and are still climbing and will continue as soon as they become more readily available just more Fear in 360 marks is all this is !!!

    And PS the PS3 is still the most wildly talked about and written about in the world and on the net today so eat a dick !
  • BabyWookie, on 10/12/2007, -1/+2BTW, I was lucky made about $500 profit off the 60GB I had. It's actually more than I made on a 360 last year. My other friend had all kinds of problems selling his 60GB and in the end did sell it, but lost $70.

    Still, I only had to camp one night for the 360 and two nights for the PS3, so in the end, I didn't think the profit was worth my time. I hope that makes ya'll happy. I did use the profit to finance my Wii purchase though. :)
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