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NEWS: 11 Arrested for Creating Fake Accounts to Buy Over 2,000 Game Consoles for Resale in Japan




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mrsticky005



Joined: 06 Nov 2008
Posts: 126
PostPosted: Mon Jan 29, 2024 4:02 pm Reply with quote
I'm stupid...

Why would it be illegal to resell game console units that you own?
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BrosefAmelion



Joined: 23 Oct 2020
Posts: 50
PostPosted: Mon Jan 29, 2024 4:05 pm Reply with quote
mrsticky005 wrote:
I'm stupid...

Why would it be illegal to resell game console units that you own?


They're being arrested for fraud since they are not allowed to buy multiple consoles.
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Greed1914



Joined: 28 Oct 2007
Posts: 4498
PostPosted: Mon Jan 29, 2024 4:10 pm Reply with quote
BrosefAmelion wrote:
mrsticky005 wrote:
I'm stupid...

Why would it be illegal to resell game console units that you own?


They're being arrested for fraud since they are not allowed to buy multiple consoles.


That seems to be the problem. The retailer has some sort of quantity limit, and the fake accounts were made to get around it. If they bought one and resold it, then it's fine. It's the kind of thing that might have been useful to have for the first couple of years when scalping was making it hard for a regular customer to get a system.

It makes me wonder what the systems were, though. The resale market on the current consoles dried up once stock shortages weren't a problem, so it's hard to see those as being worth the risk of legal trouble.
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zeopower6



Joined: 01 Nov 2011
Posts: 191
PostPosted: Mon Jan 29, 2024 9:26 pm Reply with quote
I'd guess limited edition Switch?
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Rob19ny



Joined: 13 Jun 2020
Posts: 1803
PostPosted: Wed Jan 31, 2024 3:07 am Reply with quote
Quote:
(Note: Sony's PlayStation 5 is pictured right, but neither the newspaper or website actually specify any game consoles.)


Oh, but we know you assume its the PS5. Sony has increased the price of the PS5 multiple times to prevent the scalping that took place since launch and the stock situation fixed back in late January 2023. The PS5 has not had one price drop yet. Meanwhile, since Summer 2023 its been "speculated" that the other console has been getting scalped (or foreign purchased) since its hardware numbers continue to be so high considering its age.

Quote:
October 16 to purchase 18 game console units, with an estimated amount of 684,000 yen (about US$4,627).


This is the other console. It costs 37980 yen ($257.24). Times 18 = $4,630. The limited edition (costs 37980 yen) released on October 6 ahead of a certain Wonder on October 20.
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TarsTarkas



Joined: 20 Dec 2007
Posts: 5898
Location: Virginia, United States
PostPosted: Wed Jan 31, 2024 9:45 am Reply with quote
Whether its concert tickets, trading cards, and gaming consoles, buying up lots of stock and then reselling them for scalping prices is bad.

When you can't buy a Happy Meal for your kid, cause some adults bought them all out to get some toy figure. Same with trading cards, Pokemon cards, and some gaming cards.

Bad for the companies too, While they got their sales, their customers are all mad because they couldn't buy their gaming consoles at retail prices. And that might drive some of the other customers to other company's gaming consoles.

It has gotten easier for the criminals to do this by using Bots for purchasing. Retail stores and internet vendors need to do a better job parsing out fradulent/bot accounts and enforcing customer minimums.
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XSp



Joined: 23 May 2014
Posts: 258
PostPosted: Wed Jan 31, 2024 5:05 pm Reply with quote
Jail is one way of dealing with the scalping problem, yes.
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mrsticky005



Joined: 06 Nov 2008
Posts: 126
PostPosted: Thu Feb 01, 2024 7:53 pm Reply with quote
I mean I get that they obviously want to re-sell them for a profit
and that they are arrested for fraud for the fake accounts.

But it's like I can understand scalping for something like a ticket to a sports game
because there's a fixed amount of seats in the stadium no matter how much the
stadium makes.

However while 2,000 consoles might sound like a lot I doubt it's a whole compared
to the millions that are manufactured and sold. Aren't PS5s sold for something like
$500 a pop? So that's a cool one million spent on 2,000 PS5s.

So then in order for them to make a profit they would have to sell those 2,000 PS5s
for more than the $500 price. Though why would anyone buy from them when
it's gonna cheaper buying a new one from the retailer?

Even if they bought all 50 million units that were sold that's at least 100 billion
which then would just make the company they bought from 100 billion dollars richer.

How would they mathematically out compete with the retailers and Sony?

At a certain point there's not going to be enough people willing to
spend a grand on a game console. I mean I'm sure some would
but hell even $500 it's basically gonna be an investment for a lot of folk.

Or do I got this all wrong?
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