Re:Bots behind the game console shortage
by Macha on Friday May 27, 2022 @03:55PM
(#31534145)
I can go to the store or the store's website right now and just get a new xbox series for MSRP (or €50 less than msrp, in the series X case). In fact, last month I did just that.
If the PS5 equilibrium price is say... €800 (the buy it now price on ebay right now), and Sony raises prices to that level, some number of customers are going to throw in the towel and buy an xbox, with the loss of €120/yr PS plus revenue, 30% of their game purchases, etc. to MS.
Is this number of people and their spend higher than Sony will gain from pocketing what scalpers currently are? Clearly at Sony HQ they either suspect it will be or are too scared to find out.
Compare the GPU shortage where both major manufacturers were affected and hence retail prices did go up and per AIB card makers, at least part of that was nvidia and amd. Because their market didn't have an instock competitor to worry about, and a big chunk of their market (miners) were more economically focused on expected returns vs cost, while consumers for entertainment products may not look at it from such a calculating perspective.
If the PS5 equilibrium price is say... €800 (the buy it now price on ebay right now), and Sony raises prices to that level, some number of customers are going to throw in the towel and buy an xbox, with the loss of €120/yr PS plus revenue, 30% of their game purchases, etc. to MS.
Is this number of people and their spend higher than Sony will gain from pocketing what scalpers currently are? Clearly at Sony HQ they either suspect it will be or are too scared to find out.
Compare the GPU shortage where both major manufacturers were affected and hence retail prices did go up and per AIB card makers, at least part of that was nvidia and amd. Because their market didn't have an instock competitor to worry about, and a big chunk of their market (miners) were more economically focused on expected returns vs cost, while consumers for entertainment products may not look at it from such a calculating perspective.