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Wednesday, January 24, 2007

ps3 revenue?

While preparing taxes, how exactly would one classify the income made off of reselling Sony PS3 game systems during the holidays? That is one of the questions that came to mind during the holidays when my father called me to ask if there were any more PS3 gaming systems available at my local WalMart. His phonecall (and pursuing question) caught me offguard. Why would my father, of all people, be calling to ask me about the availability of PS3 systems in my area?

His reason for doing so became apparently clear when he informed me that he was watching these systems sell on Ebay for $8000 each - the mother of all arbitrage opportunities, aside from real estate. People were camping overnight in the parking lots of various retail stores across the country to get their hands on these $800 systems so that they could sell them at a hefty profit. My father spoke to one of these "early birds" in the parking lot, and the guy told my father that if all goes as planned, he will be able to buy one and resell it on Ebay to someone willing to pay ten times over the retail price so that they can be one of the "first" people to get a PS3.

The worst part about this whole "rabid consumer" scenario is that Sony planned on this happening. I was informed by the electronics department of my local WalMart that they were only initially receiving four of the units. It reminded me of the Cabbage Patch craze of the eighties, but you can imagine what consumers would be willing to do to each other for something that could be worth $7000 or more. Fortunately, I didn't hear about any skirmishes in my area.

I wonder how those idiots that paid $8000 for a PS3 during the holidays feel now that you can get one for less than $700? I am starting to understand why so many marketing firms operate under the belief that the American public consists primarily of morons who will attach themselves to any new fad if it is thrown at them often enough...

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