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Forums - Sony Discussion - Scalpers are threatening the profitability and longevity of PS5 | System suffers unusually low attach rate due to scalpers

PotentHerbs on 24 December 2020
KManX89 said:

Read it again, they're NOT being sold, at least not a rate that turns a profit (and platform holders get a cut of all software sales, let's not forget, especially first party games). Less than a third of all physical games were sold for every console moved, that's operating at a loss. Even with digital sales added, they don't break even.

Not that any of this matters to scalpers, they only have to sell a fraction of their hoarded stock to turn a profit since it's being sold for more than double or even triple (!) their MSRP.

And I'm ready to quote you in a few months time when all this shit is still going on.

Why are software sales in Japan any indication of software sales worldwide? Scalped units are probably in the ballpark of 2 - 5% of PS5's sold. 



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KManX89 on 24 December 2020

EDIT: wrong thread.



hunter_alien on 24 December 2020
KManX89 said:
vonny said:

Random analyst says x, any affect from scalpers will be short lived. If scalping continues to be a thing it means people are still buying them which means games will be also sold, if scalpers can't sell their stock the scalping will end.

Read it again, they're NOT being sold, at least not a rate that turns a profit (and platform holders get a cut of all software sales, let's not forget, especially first party games). Less than a third of all physical games were sold for every console moved, that's operating at a loss. Even with digital sales added, they don't break even.

Not that any of this matters to scalpers, they only have to sell a fraction of their hoarded stock to turn a profit since it's being sold for more than double or even triple (!) their MSRP.

And I'm ready to quote you in a few months time when all this shit is still going on.

hunter_alien said:

What about digital sales? Sorry but tthe arguments are not convincing enough for me to actually think that this will hurt them in the long run.

*sigh* Here it is since some people lack reading comprehension:

“Even if we consider digital download software purchases, the percentage of sold PlayStation 5s actually in use is not that high, meaning the current demand is constrained by profit-taking resellers,” according to Hideki Yasuda, an analyst at Ace Research Institute.

I read it but it just shrugs away digital sales and many other possible explanations and makes it seem like a far bigger sensation than it actually is. I mean as of latte console digital sales on the PS3/One were over 2/3 of the total software sales (or even higher in times of the pandemic). Why wouldn't it be far bigger on the PS5?

This article is just written in a very clickbait manner, and it conveniently forgets to prioritize concrete information and vaguely word many "facts" like "actually not that high". Based on what? Historical data? Expectations? Rival systems? Or simply what the analyst would want to see?

Don't get me wrong, I hate scalpers, they are the lepers of the launch period, and I do agree with you that they are not helping the industry in any way, shape, or form, but articles like this are written mostly to grab attention and make a huge fuss about something that is either not there at all, or it's there but the impact is far more limited.

Also, the last part of the article simply spins the fact that the PS5 is not an attractive product for the Japanese consumers, by somehow attaching this to the scalping issue. What is mentioned there is mostly down to the PS5 software offering in general, and the decline of home consoles in Japan, rather than the 5 minutes of fame that scalpers are enjoying.



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Cobretti2 on 24 December 2020
Azzanation said:

The only reason the PS5 and Series S/X launched at their state was because these multi-billion dollar corps wanted their Xmas bonuses. Too much money is lost if they release after Xmas. Hence the under manufacturing of units and scalper issues. This could have all been avoided if both Sony and Microsoft considered waiting for more supply and delayed the launches.

Why does everyone assume its all about Xmas bonuses. For most part companies differ when they pay them or if they even pay them. Some pay twice a year, some once a year. Mine for example pays in September. my best friends company doesn't even pay a bonus.

It is just pure business sense to do it for various reasons (yes bonuses may be one of them but not the main reason). Christmas everyone goes crazy buying presents so you release something for it. I'd argue for a console manufacturer it is more about recouping the R&D costs quicker for the new console and giving confidence to shareholders and developers that the console has a strong start.

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Dallinor on 24 December 2020
Azzanation said:

Remember when i was tagged as Trolling in another thread because i brought up scalpers helping sell out the PS5 and Series X consoles.
I tried to tell people that this is a big deal and people choose to ignore reality.

Yes and you were rightfully called out on it. It's an absurd argument to suggest scalpers had a major impact on sales or that the PS5 would not have sold out initially otherwise. Genuinely one of the most ridiculous things I've read on this site in a long time.



 

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Azzanation on 24 December 2020
PotentHerbs said:

That only applies to MS. Sony had software ready for launch, as well as a jam packed 2021, and had shipped enough PS5's to break the PS4's launch record in many regions. 

That applies to both, the software is not the problem here, its the supply.

Cobretti2 said:

Why does everyone assume its all about Xmas bonuses. For most part companies differ when they pay them or if they even pay them. Some pay twice a year, some once a year. Mine for example pays in September. my best friends company doesn't even pay a bonus.

It is just pure business sense to do it for various reasons (yes bonuses may be one of them but not the main reason). Christmas everyone goes crazy buying presents so you release something for it. I'd argue for a console manufacturer it is more about recouping the R&D costs quicker for the new console and giving confidence to shareholders and developers that the console has a strong start.

'

Because.. they will sell the most units at Xmas time which boosts their sales by a decent market. You don't figure why they both didn't want to wait after Xmas?

Dallinor said:

Yes and you were rightfully called out on it. It's an absurd argument to suggest scalpers had a major impact on sales or that the PS5 would not have sold out initially otherwise. Genuinely one of the most ridiculous things I've read on this site in a long time.

Rightfully or wrongfully? I bet the only ones trying to defend against that claim are the usual same people who dislike facts. You have no proof that these consoles would have sold out completely at launch because they haven't sold out right now, there are thousands of PS5s and Series X's sitting in warehouses waiting for customers to buy them. If you think that's selling out than id say you are wrong.

❌ THREAD BAN (perm.): continuous repetition of unsubstantiated claims typical of this sort of topic

Last edited by CGI-Quality - on 26 December 2020

PotentHerbs on 24 December 2020
Azzanation said:
PotentHerbs said:

That only applies to MS. Sony had software ready for launch, as well as a jam packed 2021, and had shipped enough PS5's to break the PS4's launch record in many regions. 

That applies to both, the software is not the problem here, its the supply.

That sounds like another Microsoft issue to me. The PS5 is sold in more countries than the Series X, but the PS5 will likely sell 1.0 - 1.5+ Million more consoles than the PS4 when comparing their holiday launches, breaking all sorts of launch records worldwide, while the Series X can't even beat the XOne launch in NA. 

The PS5 would still be supply constrained if it launched in March and most likely be sold in even more countries like India simultaneously.



HoangNhatAnh on 24 December 2020
Hiku said:
HoangNhatAnh said:

Well, it's a ps4 game alright, not even a system seller in JP anymore. 

FF7R week in Japan saw a jump in PS4 sales to 79,059, from 19,535 the week before.

Pretty reasonable considering the system had been on the market for 6 years, and would get replaced later in the year, so most people that want one would have gotten one already.

Yeah, it will never be a system seller for ps5 in JP.



TheBraveGallade on 24 December 2020

Third point: Japan has completly moved away from traditional home consoles ever since the psp, and the switch put the nail in the coffin for most.
At any rate, for cristmas presents its highly likely that most people are going for switches anyway.



Azzanation on 25 December 2020
PotentHerbs said:
Azzanation said:

That applies to both, the software is not the problem here, its the supply.

That sounds like another Microsoft issue to me. The PS5 is sold in more countries than the Series X, but the PS5 will likely sell 1.0 - 1.5+ Million more consoles than the PS4 when comparing their holiday launches, breaking all sorts of launch records worldwide, while the Series X can't even beat the XOne launch in NA. 

The PS5 would still be supply constrained if it launched in March and most likely be sold in even more countries like India simultaneously.

Dude, i don't know what conversation you are on about, this isn't about system sales, its about manufacturing issues led by short supply which is causing scalpers to basically buy out all the stock to resell. Hence the low attach rate of games mentioned in this thread. Scalping only happens when companies deliver short supply..

Both PS5 are Series X have been sold out at launch, and that was helped due to scalpers and bots. Games cannot sell high amounts if the consoles aren't in actual customer hands.