Scalping Needs to Stop, Even If It Won't

Buying a highly sought after product only to resell it at a higher price constitutes a sin. Scalpers and advocates of unrestricted capitalism may argue that it's simply a matter of supply and demand, and it's legal, though not ethical, to sell a PlayStation 5 or Xbox Series X ($500 MSRP) on eBay for over $1000, or whatever price stupid idiots (with too much money) are willing to pay.

However, I'm willing to play devil's advocate. Perhaps scalping is merely a practical and clever way to take advantage of the free market. People are free to buy and sell whatever they want, and there are no laws indicating that it's illegal for someone to resell something they have purchased, no matter what the price.

Adam Smith's concept of the "invisible hand" suggests that though people are motivated by self-interest, the ultimate outcome is mutual benefit for all as people provide goods and services for one another based on supply and demand, generally without the need for restrictions. But when it comes to scalping, only the scalpers benefit, and regular consumers suffer.

And now bots are involved. One day I tried multiple times to add a PS5 to my cart on Walmart.com, only for the website to freeze for ten minutes prior to notifying me that the PS5 was sold out. This process repeated several times throughout the day during each scheduled restock. It's become clear that without specialized software, buying a PS5 or Xbox Series X seems impossible for many.

Granted, there are plenty of fortunate individuals who managed to obtain their consoles without having to pay scalpers. But when scalpers have made over $40 million in profit, it doesn't take a genius or idealist to understand that something needs to be done. We need to disincentivize scalping so we no longer see online images from scalpers of the stacks of PS5s they managed to procure with bots.

Undersupply of highly desired video game products is nothing new. When Super Mario Bros. 2 came out in the U.S. in 1988, parents spent hours and days traveling to stores, waiting in line, and being told that the game was sold out wherever they went. Wiis were impossible to find in stores between 2006 and 2008, and even Switches were in short supply throughout 2020. Scalpers and Nintendo certainly love each other.

Now scalpers have found new money-makers with the PS5 and Xbox Series X. While Sony and Microsoft are likely selling their consoles at a loss and doing nothing to address scalping, scalpers gain all the profits. Scalpers even have the gall to brag or plead for sympathy due to the notorious reputation they have gained (and even embraced) online.

Scalping groups like Crep Chief Notify charge their members a monthly fee in order to gain access to tools and resources that would allow them to instantly purchase products in high demand and resell them for hundreds of dollars in profit. They expressed "no regrets" over reselling 3500 PS5s, believing that they were "putting food on the table" for their members. I'd call them scum of the Earth, but that would be disrespectful to scum.

The public outcry has led to UK politicians attempting to pass legislation that would make it illegal to resell products purchased through bots. I doubt that any action will be taken in the US as much as I'd like to see it, as much as it's needed. We'll just have to wait and see how many more months or years it will be before PS5s and Xbox Series Xs can readily available. It would be nice if there were more security measures and a simple "one item per customer" policy to prevent scalpers from obtaining so many consoles in the first place.

Some scalpers have been lured by fake buyers and then threatened at gun point. Now that's not right. No one should be threatened or robbed, even if they're a scalper.

According to Dante, the fourth circle of hell is reserved for those consumed by greed. We can only imagine if there is a dedicated area in the circle for scalpers. But avarice is not limited to resellers; those who purchase products from scalpers are also part of the problem. Scalpers wouldn't scalp if no one bought from them.

I question who should bear most of the blame: the companies who fail to provide adequate supply and fail to take a strong stance against scalpers, the scalpers themselves, or the buyers who allow scalpers to profit in the first place?

If scalpers had no buyers, then the invisible hand would ensure that scalpers would seek out other (and hopefully more ethical) means of making money.

With full disclosure, I must admit that I myself have succumbed to my desire for certain limited and rare Nintendo/Zelda products. I paid over $200 for an NES Classic ($60 MSRP) on eBay after former Nintendo of America President Reggie Fils-Aime publicly stated that Nintendo would no longer produce anymore units. Apparently he and Nintendo lied, as more stock of NES Classic arrived at a later date. On the bright side, I managed to purchase an NES Classic for retail price as a gift for a friend. But I also I paid $150~ for the limited edition of Majora's Mask on the 3DS ($55 MSRP) and $400~ for the gold Majora's Mask edition of the New 3DS XL ($200 MSRP). Obviously, I would have rather paid the MSRP price for these items, but they were sold out everywhere. I even bought the European limited editions Majora's Mask 3D, Link's Awakening, and Breath of the Wild (for the stupid shoddy Master Sword statue) for well over the price they were worth. You can see how much I'm obsessed with The Legend of Zelda.

Although the Skyward Sword HD Joycons (MSRP $80) have already sold out within minutes, I'm waiting to see if more stock will be available before I consider paying another scalper on eBay. I dread the inevitable special edition of a revised Switch console that will release alongside the Breath of the Wild sequel. Once again, it will sell out despite my desperate efforts to secure one for retail price, and once again I'll have to pay a scalper hundreds of dollars more than the product is worth. That is, if nothing changes.

As much as I hate myself for giving scalpers money, I can seldom say no to Zelda merchandise. My obsession and addiction to The Legend of Zelda feels like the bane of my existence at times. Thankfully, outside of Zelda collectibles, I can refuse to pay scalpers for a PS5 and everything else.

In my last essay about microtransactions, another malfeasance resulting from greed, I quoted King Lear: "Nothing can come of nothing." In the context of Shakespeare's play, King Lear criticizes his daughter for refusing to praise him, but ironically her lack of words better expresses her sincere love for him than the saccharine and deceitful speeches of her older sisters. Sometimes, in certain circumstances, choosing nothing or inaction is the way to go.

At the same time, if nothing is done to prevent scalping, scalping is sure to continue. Sometimes it's better to do nothing, such as choosing not to buy  products from scalpers or refusing to purchase microtransactions. Other times it's imperative to take action to address injustice and prevent unfair trading practices. Banning bots from shopping websites is a good idea. Implementing stronger security measures to ensure that the consumers buying the product are people who actually want it, and not scalpers who are just planning to resell it, is a good idea. Having more stock of a product (or at least promising and delivering more stock at a later date) that everyone wants is a good idea. The system for sellers and buyers should not favor or allow scalping. What I'm calling for is ethical economics - applying morals and common sense to promote fairer trading practices. Incorporating ethics into economics is nothing new; in fact, ethical economics is one of the oldest ideas in philosophy and economic theory dating back to Ancient India and Ancient Greece.

Desire is the source of all suffering - this a fundamental tenet in Buddhism. Attachment is the root cause of all of a person's problems. Becoming fully detached is the key to enlightenment and freedom from suffering, but for most people this is impossible. We want things. The fact that human beings are so susceptible to desire is a challenge the majority of us cannot overcome.

People want money. This is why scalpers scalp. People want shiny things they don't need. This is why consumers spend money on useless objects. In my case, my desire for collectibles outweighs my desire for money. I'm fortunate enough to have extra money that I can spend to add items I desire to my collection of aesthetically pleasing but useless memorabilia. If Dante saw my collection and learned how much money I've spent, he might place me in the fourth circle of hell too.

With how difficult it's been to get one's hands on a PS5, at least I've decided that I no longer care about buying one anytime soon. Most PS5 games can also played on the PS4 anyways. If only I could also say no to Zelda. Add the words "Zelda" and "Limited" or "Collector's Edition," and I become too willing to part with my money. Too bad Nintendo doesn't get that money if I'm forced to buy from a scalper. Even more sad is how much money I've given to Nintendo over the years. I really should stop being such a stupid idiot who keeps buying things I don't need.