PlayStation 5 and the latest Xbox consoles are fetching a premium on resale on eBay Inc EBAY, in excess of double their retail price, according to the Verge columnist Sean Hollister.
What Happened: Hollister said he averaged the final sales price of a hundred PS5s — which retail for $499 — to arrive at the street price of $1,024 for the disc edition of Sony Corporation’s SNE console.
The digital edition, which retails for $399 has the street price of $990 by the columnist’s arithmetic.
Microsoft Corporation’s MSFT Xbox Series X with a retail price of $499 is being sold with a hefty price tag of $835 and the Series S unit is on sale for $471 even though it retails for $299.
Nvidia Corporation NVDA and Advanced Micro Devices, Inc AMD- made graphics cards are also in shortage and fetching high resale prices for sellers, as per the Verge.
Why It Matters: Hollister notes that PS5 discs and digital are almost on sale for the same price and that people are making purchases of the consoles for the sake of buying them and not for included freebies.
The scalping of the units is unlikely to end anytime soon, as per Hollister.
The demand for PS5 and Xbox consoles led to Best Buy Co, Inc's BBY and Walmart Inc WMT websites crashing on the day of their launch.
Roundhill Investment CEO Will Hershey said on Benzinga’s SPAC Attack Show this month that “PlayStation at least right now appears to be winning" the last console war.
Price Action: Microsoft shares closed mostly unchanged at $214.36 on Friday. On the same day, Sony shares closed 0.61% higher at $94.40 in New York.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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