Grey Markets Compared - PS3 vs. Wii

Kotaku has a follow-up feature to their earlier look at the declining PS3 market on EBay. Post author Michael Fahey has now gone back and looked at Ebay sales, comparing the PS3 and the Wii. Unlike the sharp dips and spikes the PS3 market has suffered, the price seems to be fairly constant for the Wii console. From the article: "Considering the small window that the PlayStation 3 auctions had to turn a truly amazing profit, prospectors would have been better off in the long run purchasing a couple of Wiis, which have maintained an average profit margin of 45-50% since preorders became available. Definitely not a windfall, but a much more financially sound investment in the long run. Unfortunately these launches weren't about being sound financially. They were about betting on the big bucks, and the majority of the PS3 prospectors out there played the tables and lost."

Comments

I'm a bad person

[Control Group]

Schadenfreude, thy name is me.

*cackle*

Re:I'm a bad person

[StikyPad]

Hi Schadenfreude, my name is Overused Internet Cliche.

On the bright side of things

[vga_init]

Even if you bought a PS3 to sell and couldn't find the righter buyer, at least you have a PS3. :)

Re:On the bright side of things

[Joe Random]

Even if you bought a PS3 to sell and couldn't find the righter buyer, at least you have a PS3. :)

So what you're saying is that it's a lose-lose scenario?

Re:Scalpers hurt game sales

[Chris Burke]

I mean really, would someone please think of the profits?!?

Yeah, Isaiah was really hoping to get a PS3, too, but couldn't afford the scalped prices. Mohammed managed to get one standing in line and was making fun of Isaiah all through December.

No I can't spell, why do you ask?

Economics 101, courtesy of Sony and E-Bay

[lpangelrob]

Funny, I was just looking at the PS3 sellers on e-Bay. This particular story is a funny read if you have some time at the office (and who doesn't, if you're reading this?) I couldn't help but think of Nelson and "ha ha!"

Speculators, meet the hard rock of economics.

Re:What grey market?

[UbuntuDupe]

eBay scalping of systems bought in the U.S. to U.S. customers isn't grey market. It's just plain scalping.

So what would you say is the appropriate metaphorical color of the ebay resale market? Would you be happy with calling ebay sales "off-white"? Beige? Light green for that tinge of capitalism?

Re:What grey market?

[GoodbyeBlueSky1]

So what would you say is the appropriate metaphorical color of the ebay resale market? Would you be happy with calling ebay sales "off-white"? Beige? Light green for that tinge of capitalism? When I think of eBay scalpers the color brown comes to mind. Big, steaming piles of it. So I'm going with "Brown Market". With bits of corn.

And how many were scammed?

[flibbidyfloo]

I work with a guy whose sister thought she'd cash in by buying two PS3's and selling one to pay for her own. She put one up on eBay and someone bought it. Not being terribly eBay saavy, she didn't realize that the email she then received from "Paypal" saying funds had been transferred and to go ahead and ship the unit to Nigeria was bogus.

Now she's stuck trying to enjoy the PS3 that she basically paid $1200 for.