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Forums - Gaming Discussion - Raise console prices to reduce shortages?

 

Increase prices to reduce console shortages?

Yes 5 8.33%
 
No 50 83.33%
 
IDGAF 5 8.33%
 
Total:60
JackHandy said:
VAMatt said:

Not really as high as I thought they were selling for but yeah, that's still a pretty big up-charge. I wonder why more people don't go the local, in-store route? It can be done pretty easily if you know what you're doing.

Yeah, the profit for a scalper is probably about $100-$125 on a system that sells on Ebay for $750 in the US.  So, if supply and demand just get a little closer together, such that secondary market prices fall by $100, that should squeeze out many of the scalpers.  They'd still be able to make money selling locally where they don't have to give Ebay a cut, so scalping wouldn't be eliminated.  But, we'd definitely see a whole lot less of it.  



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Matsku said:

The reason why there are shortages right now is unprecedented demand which has lead to chipmakers not being able to make enough chips so MS and Sony couldn't just magically buy more chips as they don't exist.

There are far more chips produced than Sony or MS need.  They don't need all chips, they just need more.  So, they just need to get a tiny bit larger piece of the pie, and I'm sure they can pay their way to that.  



Azzanation said:

Sculpers will sculp regardless.

Sculptors will stop sculpting if you switch their right-hand-hammer to a left-hand-hammer.



VAMatt said:
Matsku said:

The reason why there are shortages right now is unprecedented demand which has lead to chipmakers not being able to make enough chips so MS and Sony couldn't just magically buy more chips as they don't exist.

There are far more chips produced than Sony or MS need.  They don't need all chips, they just need more.  So, they just need to get a tiny bit larger piece of the pie, and I'm sure they can pay their way to that.  

TSMC has contracts to uphold with every of their customers and their capacities are 100% booked for years in advance (probably already overbooked).

Half a year ago they were only taking new orders for 2nd half-2022:

Now they are probably taking orders for 1st half-2023.

So which contract should TSMC break in favor of MS + Sony?

And how much money from MS + Sony would weight up the costs (penalties for breach of contract, costs for adapting the production lines...) and bad reputation (unreliable contract partner)?

Last edited by Conina - on 05 September 2021

Jpcc86 said:
KLAMarine said:

Chill out dude. A games console isn't a life-or-death thing. I can't afford a private jet and I imagine they're amazing but I'm not dying from lack of one.

Only people who dont have a private jet say stuff like that. 

Well now you know I'm genuine!



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Conina said:
VAMatt said:

There are far more chips produced than Sony or MS need.  They don't need all chips, they just need more.  So, they just need to get a tiny bit larger piece of the pie, and I'm sure they can pay their way to that.  

TSMC has contracts to uphold with every of their customers and their capacities are 100% booked for years in advance (probably already overbooked).

Half a year ago they were only taking new orders for 2nd half-2022:

Now they are probably taking orders for 1st half-2023.

So which contract should TSMC break in favor of MS + Sony?

And how much money from MS + Sony would weight up the costs (penalties for breach of contract, costs for adapting the production lines...) and bad reputation (unreliable contract partner)?

I don't have an answer to the question about how much money it would take. But, we all know that there is some number. Contracts are amended and canceled all the time.  Money typical changes hands for that.  And, that's the point of the OP. It's a hypothetical.  I think we all agree it is unlikely to come to pass, for a handful of reasons.



We'd see shortages regardless of the price and in the long term, it could result in fewer systems on the market. Software is where those companies make real money. The more systems are out there the better. Also, keep in mind, that they would have to cross the psychological barrier of $500.



I don't think its worth the PR storm they'd ensue from raising the price. I think it was cause many not to get one until they'd be discounted long ways down the line



Kristof81 said:

We'd see shortages regardless of the price and in the long term, it could result in fewer systems on the market. Software is where those companies make real money. The more systems are out there the better. Also, keep in mind, that they would have to cross the psychological barrier of $500.

Do you serious think if they raised the price to $10,000 you would see shortages?