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

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: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:A seller's interesting strategy.

[Lehk228]

that's called a raffle, unless it's to raise funds for a non-profit org it is illegal in most of the country.