Abstract:
American game retailer GameStop has recently caused widespread controversy over the pricing strategy of PS5 Pro. According to an internal memo circulating online and subsequent sales page information, GameStop is selling a used PS5 Pro for $1,399.99, which is $500 higher than Sony’s official suggested retail price of a new model of $899.99. The version equipped with an optical drive is priced at US$1,499.99, while GameStop Pro members also need to pay US$1,329.99 for the basic version.
Exposed internal documents show that the company's management has been aware that the price of second-hand consoles is higher than that of new consoles, and clearly stated in the documents that this pricing "is intentional." The memorandum does not give a detailed explanation of this strategy, but it is generally believed that this is closely related to the current tight supply in the PS5 Pro market.
Since Sony raised the price of PS5 Pro from US$749.99 to US$899.99 in April this year, market supply has continued to tighten. Affected by rising memory prices and pressure on production capacity, many large retailers have been out of stock for a long time. On many third-party sales channels, the actual transaction price of the new PS5 Pro is close to or even exceeding US$1,500. Against this background, GameStop’s second-hand selling prices, although much higher than the official pricing, are still lower than the new spot prices in some markets.
Leaked documents also show that GameStop is increasing the recycling price of PS5 Pro. The recycling price of the ordinary digital version of PS5 Pro reaches US$800, and the optical drive version is US$850. Considering that the PS5 Pro will initially sell for only $699.99 when it is released in 2024, the current recycling price has even exceeded its original official retail price.
Some people in the industry believe that GameStop's move may be using the second-hand market to deal with the shortage of new machines. Since the supply of new products is limited and second-hand products have greater pricing freedom, the company is able to obtain higher profits through high-price recycling and high-price resale.
At the same time, some market observers pointed out that the recent development of PS5 and PS5 Pro cracking tools may also increase the value of some older versions of the console. Some devices that have not been upgraded to the latest firmware are sought after by specific groups of players, which may further drive up second-hand market demand. However, there is currently no evidence that GameStop’s pricing is directly related to cracking factors.
Although this internal document has been confirmed by some GameStop employees and community managers, the company has not yet made a formal public response to the matter. Discussions on the Internet about the date and part of the description of the document also cast doubt on its authenticity. However, the subsequent exposure of the price page on the official website was basically consistent with the content of the document, further deepening the outside world's attention to the pricing strategy.
As "Grand Theft Auto 6" will be officially released on November 19, the market demand for high-performance consoles has further heated up. Many players want to upgrade their devices before the game goes on sale, and the continued tight supply situation is driving the PS5 Pro market price up. This time GameStop set the price of second-hand consoles at a level higher than the official price of new products, which has become the latest epitome of the imbalance between supply and demand in the current game hardware market.
Comments