The Playstation 5 is currently completely sold out according to Sony – and not everyone who would like to have one of the consoles was able to buy one. This is also due to so-called scalpers who have snatched thousands of consoles from players and are now offering them at exorbitant prices. There has now been an insight into their network.
What is the current situation regarding the PS5? It is currently almost impossible to get one of the next-gen consoles through normal means – be it the PS5 or the Xbox Series X. The first pre-orders were immediately sold out, with further waves also. All available copies were gone within minutes.
A bot user from a scalper network proudly stated that they managed to grab more than 3,000 PS5 consoles:
A member of the scalper group CrepChiefNotify mentioned that all members together were able to grab over 3,500 consoles. This means they might have more stock than some regular retailers.
A similar picture is emerging regarding the availability of the new Geforce RTX 3000 graphics cards, the Ryzen 5000 processors, and the RX 6000 graphics cards from AMD as well. The already few available units were sold out within minutes. Players are therefore now demanding that eBay and other retailers respond and stop the price gouging.
This phenomenon, however, is not limited to electronics. Did you try to get a pop-up or inflatable swimming pool this summer because the vacation fell through due to Corona? Pools were offered at astronomical prices, if any were even available.
Making profits with bots
How did this situation come about? Some blame the aforementioned so-called scalpers. They use bots to buy up entire stocks of consoles, graphics cards, and processors from retailers in seconds. These devices are then resold at exorbitant prices, for example through eBay. The magazine Business Insider spoke with members of such a scalper network and uncovered how they operate.
According to Avo, the operator of a scalper network, it started this year with the poor availability of the Nintendo Switch. Nintendo stated that production had to be scaled back due to the Corona pandemic, while at the same time demand skyrocketed as people sought entertainment at home during the lockdown.
Throughout June and July, we were able to sell the Nintendo Switch with over 100% profit.
Avo, operator of a scalper network
Alex Kabbara, VP of AIO Bot adds:
Anything that is limited in supply but highly sought after will fetch a higher resale price. In the resale space, the margin is sometimes hundreds of dollars difference. Multiply that with the use of software like AIO Bot to snag 10/100/1000 units, and then do the math – that’s a lot of profit.
Alex Kabbara, VP of AIO Bot
Alex Kabbara offers a scalper bot that is sold for $325. With this bot, it is possible to scan the internet within seconds for online stores that have hard-to-find products in stock and to buy these items instantly.
According to Kabbara, scalpers using his bot have been able to use their profits to buy new cars and even houses.
Here, Avo agrees:
I have heard that our users are making profits in the five-digit range. That is not so easy for everyone.
Avo, operator of a scalper network
Corona favors scalping
Who are these resellers? According to Alex Kabbara, they are mostly men aged between 18 and 30. Often younger individuals are also involved. According to him, scalpers are usually people who have been hit hard by the pandemic and do not have well-paying jobs.
Operators of scalper networks like Avo agree. A combination of job loss and more free time is said to have led to a greater number of scalpers this year, but also that already active scalpers were simply able to invest more time.
How do scalpers manage to buy so quickly? The manager of the scalper group CrepChiefNotify only explains: “We know where we need to go before the announcements are made.”
CrepChiefNotify offers the service to anyone who subscribes. This starts at £29.99 and goes up to £399.99. Members are supported by the service to quickly snag highly sought-after goods to resell them at a high profit.
And CrepChiefNotify is just one of several such scalper groups that are constantly competing to see who can grab the most PS5 consoles, RTX graphics cards, or other limited availability products.
Scalper “Cibbers” explains that the scene is currently benefiting from the Corona situation. Since almost no products can be offered in stores and significantly more is being sold online, scalpers using bots simply have better chances of snatching a large portion of the allotment. Therefore, it has become extremely difficult for regular buyers to get a PS5, Xbox Series X, or even one of the new graphics cards this year – unless they pay inflated prices to resellers.
Do you have a PS5 and want to know which games are worth it for the console? We present 7 highlights.
