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PS3 and Wii lines: ranting about gray markets

Posted Nov 19, 2006 at 9:41AM EST by QJ Staff

Listed in: PS3, Wii Tags: Bill Gates, CNET, eBay, Neil Gaiman, Sony

the homonculus GREED - from Full Metal Alchemist

Let's pretend that a guy pays 50 homeless people to line up for him. And let's say he manages to buy 50 PS3 units. Then he sells all 50 - or maybe he really is a PS3 fan and he only sells 49. Still, those 49 units go on eBay and are bought by people online who have money to burn (fellow QJ blogger Karl swears that Bill Gates bought a PS3, LOL).

But shouldn't those 49 units have gone to the real fans who stood in line for a PS3? The same thing goes for those who lined up for a Wii.

It's OK if you, our best gaming buddy who often pwns us on Xbox Live, line up with somebody else so you can buy two PS3s. You're in the same company as students who baby-sit or tutor (and don't pay income tax) - you're just trying to pay for college tuition. It's "just" capitalism, right?

But what if it was a dozen units? What if it was several dozen? Some people really believe in this conspiracy theory: the Japanese mafia (yakuza) paid people like poor Chinese immigrants and elderly women to line up so that the yakuza could buy hundreds or thousands of PS3s to corner the gray market.

If you hoarded a dozen PS3s, then you're also trying to set up your own gray market. You're just a scalper.

If this was Neil Gaiman, there'd be a limit to how many books can be signed. Because he doesn't want a gray market of his books. He himself speaks out against people who get books autographed in order to sell them to other fans. Because he cares about his fans.

The irony is that the games industry isn't as fan-driven as authors, and it looks like hoarding or scalping is actually beneficial.? WTF? Scalpers contribute to market liquidity (bet most of you haven't considered that short-term market benefit) so it's theoretically good for business (although don't you think that they hurt the market in the long run by affecting consumer behavior and loyalty...). Then the Wii and PS3 consoles go to eBay, and the console maker gets added publicity.

End of rant.

In related news: I just picked up a news lead from CNET. People who lined up for the Wii played on their DS handhelds, ate food (the writer said he felt bad for janitors who have to clean up after the line is gone), read books, played cards, played guitar, slept, etc. And that ends the news.

Back to ranting.

What we'd like to hear is a real apology and a real condemnation from the console makers. Yes, they're happy because business is good, but it was not good for the people who lined up for nothing!

Can we hear an "We are sincerely and truly sorry if you lined up for nothing" addressed to the gamers who lined up for nothing. And can we have Sony or Nintendo say, "For all you hoarders, screw you. We didn't make consoles for you. We make consoles for our fans." That would be nice to hear.

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I thought this was going to be about a fullmetal alchemist game for the wii when I saw that pic (i almost never read the titles, if the pic gets my attention i read the article)

Anyway, I dont see the problem, ebay or/and sony/nintendo, should make/push for some kind of rule/law against selling ps3s/wiis on ebay/other places.

Theres no reason why i shouldnt be able to buy 50 ps3s/wiis, and sell them on ebay/other places for 1000+, dont be mad at the "scalpers", money should be made whenever/whereever possible

# But shouldn't those 49 units have gone to the real fans who stood in line for a PS3? — CSFFlame 2006-11-19 12:24

Nope, that's the way the stores set up sales. They would have to do it differently to change anything.

# What. The F-ck. — Guest 2006-11-19 13:46

I don't understand this "stop hoarding!!1!" bullcrap. People bought PS3's. Some people bought it for a profit.

Getting a lot of PS3's isn't gray marketing. This isn't gambling. People who buy on Ebay KNOW WHAT THEY'RE BUYING INTO.

We shouldn't stop people from MAKING THEIR OWN DECISION about whether or not to buy a console for more than retail price. That's a decision they make, and it's up to them. If they care that much about a console, so be it, let them pay the price. It's nobody else's business, as well it shouldn't be.

# Solution to hoarding — Guest 2006-11-19 15:39

I don't think hoarding is a bad thing. It means that people who are willing to pay more than the retail price but who do not have the time to stand in line get a PS3. That said, Sony could say to the retailers, "Everyone who stands in line for 24 hours and who does not get a system will be first in line when the next shipment comes in."

It won't end hoarding but it will cut down on the value of the PS3s that were bought on launch day. The "next in line" vouchers should be transferable and they would compete with the PS3s on the market. If you knew that you could buy a PS3 in a month that would greatly cut down on the price. ALso, the retailers might sell bundles which would be open ended as long as you spent the money on Sony products. Buy a PS3 bundle for $2000 and get the PS3 plus $1400 credit for PS3 games or BD movies.

Sony and the retailers share some culpability for the horrible things that happened on line at there stores. I expect more than a few lawsuits will result and they will deserve them.

# Who to Blame? — Guest 2006-11-19 15:50

It's not the hoarders, it's not the buyers, it's the COMPANY! These people aren't idiots, they do major marketing analysis, they have a real good sense of who is looking to spend money, where they live, how many they'll want etc...They PURPOSELY limit the numbers of consoles they'll make available for some brilliant marketing strategy that they believe will maximize their PROFITS!!! It's not complex! They simply DO NOT CARE how anyone who is unfortunate enough to not be able to get a console might FEEL! They don't care if children are disappointed at Christmas time, not because their parents or Santa Claus didn't try to get one, but rather because the company believes that by limiting the availability of their product it will serve to make it somehow "more appealing" to our simple "regular guy" brains and that it will make them the most money possible...and that is obviously their deepest concern, "good will" doesn't seem to matter!! They should be ashamed of themselves...but they're not!

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