Feature: The Decline of the PS3 Grey Market Options

[PS3Scene]

Feature: The Decline of the PS3 Grey Market Posted by XanTium | 29-12-2006 19:50 EST

From kotaku.com: [QUOTE] In the days leading up to the PlayStation 3 launch in mid-November, people all over the country lined up with dollar signs in their eyes, hoping to cash in on what was sure to be the most sought after gift this holiday season. I talked to many people planning on financing college, cars, vacations, and countless other dream items with the fruits of their labor. A week later those hopes and dreams were crushed, as reports of plummeting eBay prices poured in. Just how fast did the PS3 grey market crash? Take a look for yourself. Within two days of the system's launch the going price dropped by over $1000. eBay prospectors across the country were stunned at the rapid depreciation of their investment. While they were still looking at $600 profit on average, it was a far cry from the windfall everyone had been expecting. The smart thing to do in that situation would be to wait, right? Several enterprising folks I talked to during the launch festivities predicted a glut early on, and planned on holding their systems until Christmas, when demand would be at its highest. As the graph indicates, that wasn't the wisest move. Four days before Christmas PS3 auctions hit the lowest point ever, bottoming out at just $724. Figuring in sales tax, that's less than $100 profit on a 60GB system. [/QUOTE] Read More: kotaku.com

[BoNg420]

at $724 they prob not making $100, here it is $650 with tax, so thats $74 more, average about 30-40 for ebay fees and another $20 for paypal then shipping, you just wasted time

[dre74]

I was surprised how fast the value went down, the xbox 360's profitable grey market lasted longer. I waited in line but I did not get a ps3 I guess other then my time it wasn't that big of a lose.

[xboxbox451]

I talked to many people planning on financing college, cars, vacations, and countless other dream items with the fruits of their labor.

Fruits of their labor? More like scamming the public.

It disgusts me to see people buying these units and then trying to force others into paying nearly double the retail cost, cause scalpers nearly cornered the market of a very limited production launch. However, the last laugh was on the scalpers. I've seen tons of ads where scalpers reduced their price cause bidders simply were not paying. That's wasted fees, time , energy, and certainly no profit of which they dreamed.

[epsilon72]

Fruits of their labor? More like scamming the public.

It disgusts me to see people buying these units and then trying to force others into paying nearly double the retail cost, cause scalpers nearly cornered the market of a very limited production launch. However, the last laugh was on the scalpers. I've seen tons of ads where scalpers reduced their price cause bidders simply were not paying. That's wasted fees, time , energy, and certainly no profit of which they dreamed.

Once again - even though what the ebay sellers did made some people unhappy, they weren't scamming anybody. When shortages occur, prices inevitably rise. The ebayers just helped put the law of supply/demand into action in the PS3's case. The buyers of the expensive PS3 auctions weren't forced into buying anything - to them, a PS3 was worth $xxxx, or else they wouldn't have bought it...the only people that were unhappy were those who were not able to get a console at launch (which doesn't really matter now because they are much easier to find).

[Martinchris23]

Once again - even though what the ebay sellers did made some people unhappy, they weren't scamming anybody. When shortages occur, prices inevitably rise. The ebayers just helped put the law of supply/demand into action in the PS3's case. The buyers of the expensive PS3 auctions weren't forced into buying anything - to them, a PS3 was worth $xxxx, or else they wouldn't have bought it...the only people that were unhappy were those who were not able to get a console at launch (which doesn't really matter now because they are much easier to find).

Yes, but you fail to recognise that the reason shortages occured was mainly due to the people buying in quantity SOLELY to sell on Ebay at greatly inflated cost. This does untold damage to an economy and it wouldn't be unreasonable to assume this is what killed the grey market.

The demand was falsely created by the greed of others wanting to make a quick buck out of someone else's wish to purchase. Remove the greed and you no longer have such a problem with demand.

This post has been edited by Martinchris23: Dec 30 2006, 07:29 AM

[heartofalion]

well look at the wii most people bought that to keep and the prices are still around 400 on ebay

[Exist2Resist]

Because the only people that are willing to pay $2500 for a PS3 are the hardcore PS fanboys. Because everyone else knows how much of a flop that system is. Can you say dreamcast.

[Kamasutra318]

Serves 'em right. And well said Martinchris23.

[epsilon72]

Because the only people that are willing to pay $2500 for a PS3 are the hardcore PS fanboys. Because everyone else knows how much of a flop that system is. Can you say dreamcast.

erm...it's only been out a month...give it more time.

[Exist2Resist]

erm...it's only been out a month...give it more time.

More time for what, the PS3's are already collection dust on the shelves of disrtibutors.
People walk in see the price tag, look at the 360/Wii price tag, and their mind is made up, they purchase a 360 which has a bigger library and all the game visuals look the same, or a Wii which has a craptastic Remote.
I think more and more people everyday realise that buying a PS3 is a lost investment.
Sorry to say it but its beginning to look like the PS3 is loosing out to the other two consoles. Big Time.

I can buy a Premium 360 for $450 CAD ($513 /w tax) with a Game some Arcade titles, 3 month xbox live, and some M$ points. OR a PS3 for $660 CAD ($752 /w tax) or $550 (630/ w tax).
Either way i come out on top with the 360 because it comes bundled with items, and as a consumer i will buy the system that comes with the better package.

[dmitri]

More time for what, the PS3's are already collection dust on the shelves of disrtibutors.
People walk in see the price tag, look at the 360/Wii price tag, and their mind is made up, they purchase a 360 which has a bigger library and all the game visuals look the same, or a Wii which has a craptastic Remote.
I think more and more people everyday realise that buying a PS3 is a lost investment.
Sorry to say it but its beginning to look like the PS3 is loosing out to the other two consoles. Big Time.

I can buy a Premium 360 for $450 CAD ($513 /w tax) with a Game some Arcade titles, 3 month xbox live, and some M$ points. OR a PS3 for $660 CAD ($752 /w tax) or $550 (630/ w tax).
Either way i come out on top with the 360 because it comes bundled with items, and as a consumer i will buy the system that comes with the better package.

Wait a year. BluRay and HD-DVD kinda flopped this Xmas, but they'll be in full force this coming year. The Ps3 is the cheaper, better(HDMI) HD player. Rechargable controller, wifi out of the box, the Ps3 is the better deal.

-dp

[throwingks]

Wait a year. BluRay and HD-DVD kinda flopped this Xmas, but they'll be in full force this coming year. The Ps3 is the cheaper, better(HDMI) HD player. Rechargable controller, wifi out of the box, the Ps3 is the better deal.

-dp

As a High Definition Media Player, yes. How many people are gonna be in the market for that, compared to the amount of people in the market for a High Definition gaming machine? In which case the Xbox360 is the better deal.

P.S. And, in the year you are talking about. There will be hybrid High Definition players which would be better buy than the PS3, for anyone looking for an HD player.

This post has been edited by throwingks: Dec 31 2006, 04:17 PM

[darklord999]

I can buy a Premium 360 for $450 CAD ($513 /w tax) with a Game some Arcade titles, 3 month xbox live, and some M$ points. OR a PS3 for $660 CAD ($752 /w tax) or $550 (630/ w tax).
Either way i come out on top with the 360 because it comes bundled with items, and as a consumer i will buy the system that comes with the better package.

The premium 360 is comparable to the 20GB PS3. The price difference is about $100, sure you get some filler games with the 360 but I would rather take the Blu Ray instead.

Add $50 to the 360 premium for the wifi adapter, or lack of thereof, and it's comparable to the 60GB PS3. But the 360 still has a smaller hard drive with no HD/Blu Ray player.

Anyway you slice it, the PS3 is not overpriced as a machine. Maybe as a gaming machine, it's slightly overpriced but you don't pay for PS3 online, while 360 charges you, what, $10 per month. Over the life of the console, the online charge will easily be $400-$500.

The reaction to PS3's price is due to "STICKER SHOCK" more than anything. People will rather spend $450 on a console initially, then later on pick up the wi fi adapter, pay for Xbox Live etc., without realising that at the end, they are actually spending more.

In a country where you need a calculator to do the math on how much change to give back to the customer for a $5.63 McDonald meal, this is what happens.

As a High Definition Media Player, yes. How many people are gonna be in the market for that, compared to the amount of people in the market for a High Definition gaming machine? In which case the Xbox360 is the better deal.

P.S. And, in the year you are talking about. There will be hybrid High Definition players which would be better buy than the PS3, for anyone looking for an HD player.

How much do you think the 60GB PS3 would be without the Blu Ray player? The price might drop $100-$150 by my guesstimation. So you have problem paying $100-$150 for a $700 Blu Ray player?

OK, not everyone wants it but I would rather pay $100 for it now than $700 for it later. People didn't complain about the $300 PS2 inital price tag but did they realize you need a $100 addon for DVD playback and another $100 for HD drive for PS2?

And that was 6 years ago.


This post has been edited by darklord999: Dec 31 2006, 04:43 PM

[Exist2Resist]

The premium 360 is comparable to the 20GB PS3. The price difference is about $100, sure you get some filler games with the 360 but I would rather take the Blu Ray instead.

Add $50 to the 360 premium for the wifi adapter, or lack of thereof, and it's comparable to the 60GB PS3. But the 360 still has a smaller hard drive with no HD/Blu Ray player.

Anyway you slice it, the PS3 is not overpriced as a machine. Maybe as a gaming machine, it's slightly overpriced but you don't pay for PS3 online, while 360 charges you, what, $10 per month. Over the life of the console, the online charge will easily be $400-$500.

The reaction to PS3's price is due to "STICKER SHOCK" more than anything. People will rather spend $450 on a console initially, then later on pick up the wi fi adapter, pay for Xbox Live etc., without realising that at the end, they are actually spending more.

In a country where you need a calculator to do the math on how much change to give back to the customer for a $5.63 McDonald meal, this is what happens.
How much do you think the 60GB PS3 would be without the Blu Ray player? The price might drop $100-$150 by my guesstimation. So you have problem paying $100-$150 for a $700 Blu Ray player?

OK, not everyone wants it but I would rather pay $100 for it now than $700 for it later. People didn't complain about the $300 PS2 inital price tag but did they realize you need a $100 addon for DVD playback and another $100 for HD drive for PS2?

And that was 6 years ago.

WiFi ? What are you new. Yes because i want to run wifi to any of my ethernet capable devices. I will never use wifi, it is a slow and sometimes can be an unstable connection. Wifi is for mommy that uses her laptop to surf the internet. Wired is for me, who uses their connection at its max bandwidth, sometimes bringing the modem to its knees. I'd rather have the option, thank you. And my option is to never use it.

Let's see. If you had anything that came close to the xbox live network on the PS3 you wouldnt be saying that. Ask anyone with XBL and they'll tell you it is a suprior online gaming experience. Games, Trailes, things you can customize your dashboard with... etc. PS3 has adopted the PC online model, and like i said before, if the PS3 will have a successful game like GOW more than likely the network will be brought down to its knees.
Either way Unless you have fully experienced XBL i wouldnt comment on it. And everything that the PS3 has tried to do on their online service was copied from the XBL model, then claiming that they thought of it first. Laughable, and arrogant just liek you.

Oh please Blu Ray i still encoding their video in Mpeg 2, the HD DVD quality of picture is superior and the interactive PIP menus are more enticing. They have the capabilities to do VC-1 but i think because it is a M$ codec they will not be using it. Or the royalties on it are huge, thats why it is being avoided. So take your BD Player and i hope you enjoy it while it lasts. I know you can't tell who the clear winner is yet, but BD discs will more that likely be used as coasters in the near future.
And hardcore movie fan that does his reasearch will be buying an HD DVD player, for two reasons; Cost and Quality.




Precious Blu Ray gets an ass whoopin'.

http://www.gamescentral.com/blogs/tek_jans...dvd-vs-dvd.aspx