SNTR Presents

PS5 and XBOX Restock Problems

PS5 and XBOX Restock Problems

PS5 restock and XBOX restock are commonly looked for right now for many gamers. Supply continues to be a challenge for not just the consumers but for any retailer that is attempting to sell the highly coveted consoles to the ravenous public. Many have sighted the PS5 scalpers and XBOX scalpers as the main culprits, because adding something to your cart and having it removed or never even having a chance to get that far in the process is a growing frustration for all would-be buyers. The problem is far more complex than just too many scalpers or too many consumers, and the supply challenges aren’t likely to get better anytime soon.

watch the Video
Play Video

The Scalper Problem

If you aren’t aware, there is a growing epidemic infecting virtually every market that sells items which are in high demand and available for online purchase. Scalpers have become a giant nuisance to everything from sneakers, to Pokemon cards, to PS5 and XBOX consoles.

Retailers and even Sony direct have taken some measures to help desperate consumers to feel they have a fair chance anytime a PS5 or XBOX restock takes place, but it doesn’t seem to be getting any better for those who still haven’t been able to snag one.

The challenge in this situation is far greater than just quick fingered scalpers (who actually just automated bots to beat you). It reaches into a larger industry, and one that touches more production lines than just those of your favorite console.

The semiconductor problem

The most shocking aspect of the semiconductor supply issue was reported in the article we used for yesterday’s micro topics fromĀ  Gamespot…

“Semiconductors have been in such short supply that the Biden administration announced it would be looking into the situation. The components are used in a wide variety of industries, including video games as well as automobiles. Electric vehicles were hit particularly hard by the shortage, and the 100-day review of the problem is ongoing. Since 2020, the problem has gotten worse, with major automotive manufacturers decreasing profit projections as a result.”

If the US government is taking notice and the automobile industry is taking a profit margin hit, then you know this problem extends beyond just consoles getting purchased too fast by bots and scalpers. And according to recent reports, this problem shows no sign of stopping.

The Profit Problem

An aspect of this that I had not considered until just yesterday was the profit margin angle. Both Microsoft and Sony have historically sold newly launched consoles at a loss or almost no profit per unit. And with the current demand combined with supply deficiencies, it is unlikely that folks will just “give up”

In other words, every console being made right now will sell. Period. And practically every consumer who can’t get one, will continue to try until they do. This means Sony and Microsoft don’t need to increase production or extend their costs, shrinking already small or nonexistent profit margins. They can simply wait this out.

It’s not as if you are going to run and buy the other console and take potential revenue away from one and give it to the other. Both consoles are in the same supply line bottle neck. What this means, and this isn’t good news for the consumer, is that we will be in the console scalper wild west for the foreseeable future.

related videos

share and comment

Share on facebook
Share on twitter
Share on email
Share on whatsapp

Leave a Reply

get in here!