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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

As a proud console war fighter I can't say I'd mind Sony and Microsoft hitting giant tumbles and falls over this.

....If they stumble and fail enough maybe the companies will remember the actually selling console exists for a change.

So the Scalpers could do some good if they cripple the 9th generation consoles if nothing else. Not sure if they can but it isn't like there aren't other issues at hand for them so maybe they'd just be a part of the problem



The Democratic Nintendo fan....is that a paradox? I'm fond of one of the more conservative companies in the industry, but I vote Liberally and view myself that way 90% of the time?

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You guys are giving too much credit to scalpers.

There simply aren't many PS5s out in the wild, and the PS Plus collection and digital offers in general are just too good to pass up, making physical sales lower than ever.



My (locked) thread about how difficulty should be a decision for the developers, not the gamers.

https://gamrconnect.vgchartz.com/thread.php?id=241866&page=1

Azzanation said:
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?

And that is what I said Xmas sales. It does not however mean like you imply only do it because they want Xmas bonuses. Many other more important reasons (which I stated) why they would do it over a Xmas bonus.



 

 

KManX89 said:

https://www.videogameschronicle.com/news/ps5-scalpers-are-threatening-the-long-term-health-of-the-console-report-claims/

Sony was already facing challenges satisfying demand for the product, but shortages have been exacerbated by scalpers reselling large quantities of the console at significant mark-ups, keeping it out of the hands of consumers and in turn damaging pivotal software sales.

The knock-on effect is an unusually low software attach rate in Japan, Bloomberg reports. As noted by the publication, a healthy ratio for a new console is around one game sold for each console bought.

But based on Japanese sales data from Famitsu, Sony sold around 213,000 PS5 consoles in the product’s first month of availability and just 63,000 physical games, meaning consumers have bought less than one packaged game for every three consoles purchased.

Lucrative software sales are particularly important at the start of a console’s lifecycle when the hardware is sold at a loss, Bloomberg added.

There are other factors that could be impacting early physical PS5 software sales, most notably the shift to digital. In Sony’s last fiscal year, digital software sales accounted for 55% of total PS4 software sales, and they represented an even greater percentage of the total in the first half of the current fiscal year.

PS5 also comes pre-installed with a game, Astro’s Playroom, and is backwards compatible with PS4 titles.

“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.

Another analyst told Bloomberg that consumers’ inability to acquire the console and the resulting hit on software sales could negatively impact the profitability of the PlayStation business over the coming years.

“The PlayStation 5 could miss a critical chance to get into a good hardware-software upward spiral,” said Kazunori Ito of Morningstar Research. “The peak of the platform will likely be low and the platform’s total revenue earned won’t be as strong as we hoped for.”

Bloomberg even claims that a major Japanese publisher has internally discussed the possibility of delaying its PS5 games based on concerns it has about the early market response to the console.

Still think scalping isn't a big deal? It's hurting Sony's (and surely MS's as well) bottom line because no games are being sold. Why? Because the scalpers are hoarding them off with bots. Console sales mean nothing if no one's actually playing them because they're sold at a loss. And the funny thing is, I told you all this would happen, and I was proven right.

Yeah, yeah, I know what the response is gonna be, "the gobermint can't tell me what I can and can't do with something I bought (read: botted)" yes they can, and they already do, like I said, ticket scalping is illegal. When you're scamming consumers and hurting company's profits, I believe they have every right to get involved. One publisher even said they might delay their PS5 games because of this shit. 'Cuz if no one's actually buying the games, no one profits.

I don't really see a problem. This will only go on for so long. The scalpers aren't hoarding the consoles. They are trying to make a profit off of it. So it's really just a matter of time until everything balances out.



I never got this argument. Scalpers can only get thousands out of hundreds of thousands made every week. It’s a nuisance, nothing more.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles.