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Why is Walmart selling PS5 overpriced?

Instead, the listings are from third-party sellers, who've been able to list products on the Walmart website for quite some time. These are listings that sellers can set the price for, hence the horrific price tags.

tomsguide.com - PS5 restock mess — Walmart selling console for over $1000 - Tom's Guide

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Buying a PS5 is incredibly hard, and it’s exciting to see when a retailer actually has some console in stock. But in the case of Walmart, this is one PS5 restock you will want to avoid. Walmart’s PS5 page currently has the console listed at an astronomical $1,091 (opens in new tab), more than double the official retail price. The PS5 Digital Edition isn’t much better either, and is currently listed for $899 (opens in new tab), which is also more than double the MSRP. In both instances the console isn't coming from Walmart itself. Instead, the listings are from third-party sellers, who’ve been able to list products on the Walmart website for quite some time. These are listings that sellers can set the price for, hence the horrific price tags. Third parties selling products for more than they’re worth is nothing new, and it happens just about everywhere third-party sellers happen to be. But since Walmart itself doesn’t have any PS5s in stock, listed at the standard $500 price tag, these overpriced consoles end up displayed front and center. And this is not the first time this has happened . You’d think that retailers would crack down on this, given the issues people have had buying a PS5 for a sensible price. But apparently that's not happening over at Walmart. It goes without saying that you should not be paying such obscene prices for a PS5, regardless of how much you want one. The laws of supply and demand dictate that these sellers are only asking for so much money because they know someone will pay it. Obviously, stock shortages help feed this cycle. There’s still incredible demand for the PS5, and the ongoing global chip shortage means Sony has had problems increasing production to match it. This is why PS5 restocks are so sporadic, and why they sell out almost instantly every time it happens. If you have $1,000 to spare for a PS5 our advice is to save your money and be patient. You can buy two PS5s for that price, after all. Be sure to keep checking our PS5 restock page as well; that way you’ll be able to keep on top of when restocks are coming for a fair price. More: Amazon Prime Day deals (opens in new tab) 2021 — date and what to expect

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Is Xbox selling the Series S at a loss?

Supposedly, Sony reached this point last August. However, the company resorted to increasing prices earlier this year to maintain profitability. Conversely, Phil Spencer has confirmed to CNBC that Microsoft still loses money with every Xbox sold.

notebookcheck.net - Microsoft Xbox: Phil Spencer reveals US$200 lost on every Series S ...

Microsoft has not yet raised prices for either of its current-generation consoles. However, Phil Spencer has outlined that Microsoft's sales strategy leaves the Xbox Series S and Xbox Series X consoles as loss leaders, with up to US$200 lost per console.

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It is a common occurrence for manufacturers to offer game consoles below production price to drive market share, with ancillaries yielding revenue, such as accessories, game sales and subscriptions. Typically, production costs fall after a console launch though, as has been the case with the Sony PlayStation 5. Hence, manufacturers should eventually return a profit on game consoles, maintaining profit well into a generation's lifespan. Supposedly, Sony reached this point last August. However, the company resorted to increasing prices earlier this year to maintain profitability. Conversely, Phil Spencer has confirmed to CNBC that Microsoft still loses money with every Xbox sold. Presumably, a rise in production costs has increased these losses have increased in the last few months, too. On the other hand, the relative strength of the US dollar should have reduced losses in Microsoft's home currency.

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