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Monday, February 22, 2021

Sony needs to clear the mess as PS5 authorised retailers allegedly turn scalpers - India Today

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Sony’s PlayStation 5 is one of the most futuristic gadgets to have launched in the recent times. This has been said and established enough times. We found the PlayStation 5 an upgrade worth your money. Sony did the next-generation console right. It introduced it wrong, more specifically in India. The PlayStation 5 has been launched across the globe over the past four months and its limited supply has made as many headlines as its gaming capability.

Launched in a pandemic-hit year, the console was expected to remain in shortage due to the disruption of supply chain but it’s Sony’s inability to deal with scalpers that has created a bigger mess. Now, several interested buyers have complained that even some of Sony’s authorised retailers are part of scalpers and are overcharging gaming enthusiasts for the console citing limited stock.

Sony sold 4.5 million PS5 units in 2020, really?

Sony has claimed to sell over 4.5 million consoles in 2020 basically between November and December. These figures include both the Digital and Standard editions of the PS5 and were revealed by the company during its earnings call. There is a chance that a high number of these units might have been picked by scalpers who then resold them for an increased price on other platforms. While there is no way to find the exact figure, it is worth mentioning that the console has largely remained out of stock since its launch.

That didn’t stop the scalpers from lifting it. According to an analysis posted to DEV Community by Michael Driscoll, close to 10% of the console's total sales have been resold by scalpers. Out of this, around 7% of the PS5's sales can be confirmed on eBay and StockX till January 16. All these units have been sold at a significant increase on the retail price.

In India, the PlayStation 5 was sold within seconds during the pre-orders on January 12, 2021. It has not gone a second sale since and there is word from Sony on the same either. In fact, several users complained that their pre-orders were cancelled or delayed due to a shortage of units.

Authorised stores trying to overcharge customers

The interested buyers in India had to wait longer than others for the PS5 to be available in the country. Sony’s silence and lack of clarity made the waiting period more frustrating. Now, they face a new challenge in the form of scalpers who are trying different tricks to overcharge customers.

Earlier this week, IGN reported that certain stores affiliated with Sony in Delhi are selling PlayStation 5 for more than the retail price. In some cases, the sellers were asking Rs 150,000 more than the launch price. Other scalpers have listed the console on online market place OLX for the retail price. Once reached by the customers, they negotiate for a higher price.

Sony needs to clear the mess

The entire process of bringing the PlayStation 5 to India hasn’t been as seamless as Sony would have wanted. There were trademark issues to begin with which led to a lot of uncertainty, followed by limited stock supply, scalpers and now its own retailers have been alleged of foul practices.

Sony has claimed that it has a ‘zero tolerance policy’ and expects the third party retail partners to operate in compliance of the legal frame work.

“We have taken serious note of the feedback of our patrons that have been made on our social media handle and reportedly on other platforms. We sincerely expect that the third party retail partners operate in compliance of the legal frame work of our country and follow ethical business practices. We have ‘zero tolerance policy’ for any practices that are inconsistent to the afore-said. We have taken steps, as deemed appropriate and available with company including but not limited to discontinuing our association with such channel partners,” it said in a statement shared with India Today Tech.

The company now needs to walk the talk and clear the mess that has been created around the console and protect the gaming community. As far as the interested buyers go, they should never pay more than the MRP for PS5 and look to buy the console from official channels.

The Link Lonk


February 22, 2021 at 11:54AM
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Sony needs to clear the mess as PS5 authorised retailers allegedly turn scalpers - India Today

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