It is no secret that ever since Sony and Microsoft released the PS5 and Xbox Series X, both consoles have been extremely difficult to get. The same could be said for various Pokemon trading cards, given that the demand for this collectible item has been unable to keep up with high demand. However, one notable reseller managed to take advantage of the high demand for these items and has made a handsome profit by reselling them at a higher price.
In a new profile from The Wall Street Journal, it has been reported that 16-year old Max Hayden has been able to amass $1.7 million in revenue from the reselling of the PS5, Xbox Series X, and Pokemon trading cards. It is worth noting that the $1.7 million figure is the total amount of sales generated in 18 months. Accounting for the cost of sales, Hayden made an actual profit of $110,000, which is still a considerable amount.
According to The Wall Street Journal, Hayden resells the PS5 and Xbox Series X for as much as $1,100 apiece, which is more than double their retail price of $500. Given that it has been almost a year and stocks of these consoles are still challenging to get, many players resort to paying jacked-up prices to secure a unit, especially now that the library of games for the latest-generation systems continues to grow. Apart from video game consoles and Pokemon cards, Hayden is reportedly selling sneakers and other items that are difficult to get right now.
It is worth noting that Sony and Microsoft are well-aware of the ongoing supply shortage of the PS5 and Xbox Series X, which is made worse by third-party resellers. In a statement from PlayStation CEO Jim Ryan, it was revealed that Sony is frustrated with the scalper problem. Ryan also stated that the company is working with retailers to ensure that stocks of the PS5 go directly to the hands of consumers. Several big-chain retailers are also working on improving their online security to prevent bots from making massive purchases.
While scalpers and bots are among the main reasons contributing to stock shortages of consoles and other electronics, the other cause is the global chip shortage made worse by the ongoing pandemic. Experts and industry insiders reported in March that the worldwide shortage of chips is nowhere near being solved. Given this, players should expect that both the PS5 and Xbox Series X will still be difficult to get in the coming months, with some reports claiming that shortages will continue until the second half of 2021.
Source: The Wall Steet Journal