Few technology or gaming enthusiasts have missed the fact that this autumn’s launches of sought-after products have been difficult to obtain. Individuals and groups who buy up large quantities to resell these expensively, so-called scalpers, have helped to make it even more difficult to obtain news with already limited access.
Michael Driscoll, who works as a computer engineer at Oracle, demonstrates professional skills through to compile how much scalpers have managed to rake in by reselling products. The business is carried out by developing software that reads through product ads on the auction site Ebay and compares prices with the actual price tag in the trade. Although not a complete or error-free analysis, it points to an alarmingly lucrative fall for scalping groups.
Michael Driscoll’s analysis was performed on the products Xbox Series X / S, Playstation 5, the graphics cards in Nvidia’s Geforce RTX 3000 and AMD’s Radeon RX 6000 series and Ryzen 5000 processors. Anyone who has longed for components for the computer gets extra troublesome reading, as the processors in the Ryzen 5000 series were initially resold for as much as 240 percent above the target price. The analysis ends with the products continuing to be sold at more than 50 percent above the target price until mid-January.
When it comes to graphics cards included in the Radeon RX 6000 “Big Navi”, the situation is even worse. The highest quoted price at scalpers certainly reaches “only” 200 percent above the target price, but the Radeon RX 6800 still sells for 150 percent above the target price. The sibling RX 6800 XT still rakes in 75 percent above the target price, and the sums for the graphics cards have thus not fallen to the same degree as for the processors. The situation looks slightly better for Nvidia, but is also depressing there.
The Geforce RTX 3080 has been at most 220 percent more expensive, but has recently landed around 80 percent above the target price. The mid-range RTX 3060 Ti costs about 60 percent more, while the sibling RTX 3070 makes the wallet 70 percent lighter. Relatively, the top card Geforce RTX 3090 has been the cheapest to get hold of, with an increase of “only” 40 percent.
To add is that Michael has apparently compared all graphics cards against Nvidia’s and AMD’s recommended prices, which primarily apply to Founders Edition and the reference models from the two companies, respectively. Something that seems to account for a, certainly quite small, part of the difference.
Scalpers have also not been gracious to anyone who wants to get hold of new generation game consoles. Of the two launched Xbox models, the big sibling Xbox Series X is the most popular and usually requires a 50 percent increase from the base price. The conclusion is that scalpers have earned $ 9 million on Xbox Series X / S alone. However, none of the previous products come close to Playstation 5, whose highest listing on Ebay is 380 percent above the target price.
The digital version of the Playstation 5 has not been as popular, and has reached a top mark of 200 percent above the base price. The analysis indicates that 32,500 copies of the Playstation 5 have been resold via Ebay alone, generating revenue of $ 19 million for scalpers. The digital version of Sony’s latest gaming console is twice as expensive as the competitor Xbox Series S.
Michael Driscoll’s conclusion is that scalpers have resold goods for USD 82 million since September, where USD 39 million or approximately SEK 330 million was pure profit. It is based on a total of 14 sought-after products. As Ebay is not the only platform for reselling products, Michael Driscoll estimates that the total market can be 2-5 times larger, but speculates that it can also be ten times larger.
What do you think about scalping? Legitimate business model or is there a special place in hell for those who engage in this activity?
Source: SweClockers by www.sweclockers.com.
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