United Kingdom tech retailer CeX has recently come under fire for its pricing on pre-owned PlayStation 5 and Xbox Series X consoles. With demand for the next-gen consoles high and supply lacking, some retailers have taken the opportunity to resell the consoles for a higher price than retail value. Consoles are being resold at ridiculous prices on consumer e-commerce sites like eBay, but businesses like CeX are also joining the resale market.
Currently, the UK retailer has the PlayStation 5 for resell listed at £815, which converts to about $1097 USD. The PlayStation 5 is retailing in the UK for £450, or $605 USD, which is nearly half the price that CeX is reselling the console for. Based on an internal email obtained by Eurogamer, CeX encourages employees to tell angry customers that prices on the consoles are less than many eBay listings, and there is also a 24-month guarantee on the systems.
CeX's price point for the PlayStation 5 and the Xbox Series X has received negative feedback not only from customers, but from employees as well. In an interview with Eurogamer, one anonymous employee said, "Obviously none of us think it's good. We have been told that the price is high to match with eBay, but that's when it was £750, it's now even higher."
Scalpers have been a huge problem around the release of the PlayStation 5 and Xbox Series X. Amid the COVID-19 pandemic, the release of next-gen consoles has shifted to digital purchases, allowing scalpers to secure large quantities of consoles. UK Scalper group CrepChiefNotify bragged about securing over 2,500 PlayStation 5 consoles for resell, with many fans expressing their anger at the group that has prevented many from being able to secure a PlayStation 5.
However, many also place blame on the console manufacturers for not creating enough supply. Sony CEO Jim Ryan recently said that "absolutely everything is sold" when asked about the PS5 sales figures, meaning that resales of the console will most likely dominate the market during the holidays.
Many have denounced the actions of scalpers, saying that scalpers are taking advantage of the market and the current pandemic, and preventing families from giving a PS5 gift for the holidays. The anonymous CeX employee said, "CeX is legally in the right to put the price to whatever they want but morally I find it repugnant and think they are helping keep the scalping prices so high in a year when we could all use a little bit less crap to deal with."
With demand high, some consumers are still willing to pay the ridiculous resell prices. CeX has allegedly sold all Xbox Series X consoles after coming under fire for the £690 selling price nearly two weeks ago. Now, with the CeX price for the PlayStation 5 rising, employees are preparing for angry customers while the retailer makes a profit.
Source: Eurogamer