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Russian resellers of consoles explained why the double price is normal
nineteen.03.2021 [16:58],
Konstantin Khodakovsky

Cybersport edition.ru studied the texture of the problem of supplying new generation consoles in Russia and tried to find out when the deficit could be expected to end. By the end of 2021, 4.5 million PlayStation 5s had been sold worldwide — a record starting figure for Sony, but the lion’s share of consoles went to dealers who raised prices for consoles in the winter season by 1.5-2 times.

Using VPN and data from different persons, as well as paid channels in messengers and bots to monitor and automatically place orders, resellers manage not only to quickly snatch goods, but also to purchase consoles in batches, which retailers are trying to resist.

In addition, the employees of retail chains themselves are involved in dishonest schemes for the purchase of gaming systems: it is a known fact that operators from Citylink put consoles in a reserve for fictitious persons and then give the goods to more generous buyers for a fee. There were also cases when customers in Citylink could not pick up their reserved console due to its actual absence in the warehouse. Also, operators do not need to inform the interested person about the exact time of the next delivery.

In Russia, a structure of buyers and resellers was quickly built up, supplying consoles to smaller stores and market traders with an extra charge of 10–20 thousand rubles. Sometimes the reputable «wholesalers» receive several hundred consoles at once, which are not even imported into the retail network, but go directly to them.

As a result, it all boils down to the fact that those who have learned all the intricacies of buying and resale reward themselves with profits and force end users to overpay by buying systems from less reliable sellers, instead of picking up the set-top box in chain stores, where they are brought in by official dealers. Speculators believe that they eat honestly earned bread, since prefixes are not a basic commodity. Nobody forces you to buy, and besides, it is still possible to buy a set-top box from a large chain store. In theory. But those who really undeservedly experience the anger of buyers are the owners of private stores who buy consoles themselves at an inflated price and only put the required margin. The whole chain is shown in the image below.

Fraudsters also interfere with the scheme, especially on Avito, from which not only end buyers but also resellers suffer.

Sony and Microsoft are selling consoles at close to cost or even at a small loss, relying on gaming profits. However, the sales of the latter show an uncharacteristic lag behind the number of systems implemented, in which some also see the consequences of speculation and overpricing of set-top boxes: people spend too much money on hardware. By the way, an unexpected result of the shortage of PlayStation 5 and Xbox Series X and S was the increase in the cost of the previous generation consoles.

Well, in general, the reasons for the shortage lie in quarantine measures, the active deployment of 5G networks and the trade war between China and the United States — all this significantly increased the volume of orders for the production of chips or complicated logistics. Semiconductor forges are revising their plans towards expanding production, redistributing the load on conveyors, customers are transferring some chips to old standards, but the shortage still cannot be overcome, and it affects many industries. There are well-known problems with the supply of NVIDIA GeForce 3000 series graphics cards, which are further exacerbated by demand from cryptocurrency miners. Even in the automotive industry, which is increasingly using electronics, there are reports of great difficulties.

However, measures to optimize retail in order to limit the activities of resellers is what is most needed in the market of consoles and video cards today.

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