Why is the PlayStation 4 So Expensive

PlayStation 4 is Sold Out

Now that the PS4 is on the market it sold out and to get it now can cost you an arm and a leg. You may be asking, why is the PlayStation 4 so expensive? It’s only supposed to retail for $399.

SUPPLY AND DEMAND

The only reason why the cost of the PlayStation 4 is not the suggested retail price of $399 is because there is no more supply of PS4 units left in many of the retail and online stores. They are ALL gone. However there are people out there who bought more than one either by going to various stores or having other people buy PS4s for them.

These people are now reselling the brand new units for a higher price because none of the stores have them anymore and they can easily and freely do this, and make a fist full of money in the process. Is this unethical? You may think it is because you were not the one who thought of doing it, but if you had the means to do so, I am sure you would have just so you could easily double and maybe triple your investment.

I HAD TO REMOVE THE AMAZON LINK FOR THE PS4

Last week I had the link for the purchaseof the PlayStation 4 from Amazon on my blog post page. A couple of days later when I had checked the post I saw that the purchase price went up to $899 – $1,299. I asked Amazon why the price was so expensive and they said.

“…There weren’t any available to order. Now, however, there are two available from merchants who are selling them through Amazon for nearly $900 — a great deal above the suggested retail price. Currently, Amazon itself has no PlayStation 4s in stock. As soon as they come back in stock, you should see the price return to the normal level…”

A great deal above the suggested retail price? I don’t know about you but if I have to pay above the suggested retail price, then it is not a great deal. This is one of the many reasons why I do not buy any new technology when it first comes out when I can wait a couple more months and buy it when it is cheaper and there is more than enough supply to meet the demand.

If you have any comments or questions, please leave them in the comments section below and I will return with a reply.

About Robert Prescott 18 Articles
My name is Robert and I have been in the video game industry for 25+ years specializing in QA

32 Comments on Why is the PlayStation 4 So Expensive

  1. Congratiulations. You are really a good writer. It makes you credible to say that you don’t to sell for Amazon. I’m ignorant about the subject, but you convinced me.

    Do you have time to change the favicon any time soon? πŸ˜‰

    Good work. Keep it up.

    • Thank you! Yes I will get around to that probably after the holidays. I’m trying to finish up my other website and getting ready for my big eBay sale for the next couple of weeks. Once I have more time I will tweak favicon on all of my websites.

    • LOL, me too Mike, me too. But I stopped doing that a long time ago. Waiting on a long line in the cold to be one of the first is not my thing anymore. Maybe it’s time to pay someone to do that for me. Hmmm…The Xbox-One is coming out in 8 days. πŸ™‚ – Thanks for reading and commenting on my post Mike!

    • I know how you feel. I was going to get one just so I can resell it on my eBay page. I have NO desire to own one. The PS3 is just fine with me, especially since my favorite game Grand Theft Auto 5 is not and will not be available for the PS4. You waiting after the new year could be quite beneficial because some of the PS4s that were shipped had defects with their internal hard drives. So the next batch coming out will have that issue resolved. – Thanks for reading and commenting on my post Lawrence!

  2. Well now isn’t *that* interesting. I’m surprised the same thing hasn’t happened to Xbox 1–it seems like a lucrative way to make money. It always makes me wonder when a new item sells out so quickly; almost like it’s a deliberate ploy to drive interest in the item. But that’s just the paranoid side in me coming out.

    Any idea when the new Zelda game for Wii U is coming out? I promised myself I wasn’t going to buy a Wii U until it did…

    • Your paranoid side isn’t quite wrong. Many of the big video game companies purposely hold back a little of their supplies but not always to create more interest but to cover the order shipments that can and do get damaged during shipment. Sometimes video game manufacturers under estimate the amount of units that need to be made which based on how fast the PS4 sold out, is why there is such a shortage now. As for the Xbox One, we will see. That system doesn’t come out until Black Friday, Nov 29. I’m not sure about Zelda. I can ask my friend who runs the testing department at Nintendo if that game has passed through yet and if not when. – Thanks for reading and commenting on my post Max!

  3. Wow, that is just crazy! My son keeps telling me he wants this and I was laughing at him with the $399 price… You are right though, never buy technology when it first comes out.

    • Yup! Sold out in 6 days! Personally I never got into the whole “Go Crazy” mode when new technology comes out. It makes no sense. It will still be a hot item 2 months later. – Thanks for your comment TJ!

  4. WoW, lively discussion! Its interesting how the laws of supply and demand work isn’t it? Personally, I see no problem with private parties increasing their asking prices for the units. Its strikes of classic “whatever the market will bear” tactics.

    Of course, no one is forced to pay (what seem to me to be) outrageous amounts for the gaming console. In fact, I would suspect that the people that have the money & the motivation have little trouble with the arrangement.

    All I can say is that I wish I had thought of that!

    • I was just saying to a friend of mine yesterday that I wish I had pre-ordered one so I could have re-sold it on eBay. I definitely could have doubled my money and I would start the auction at only $1.00. Totally insane! PS4 sells out in less than a week and I know Sony has more in their warehouses, not much but some. – Thanks for your comment!

  5. Technically, it applies to all commodities. The supply and demand curve. The next question is that why the stocks are gone? Hoarding perhaps.

    About Amazon, I totally agree with you that t ain’t a good deal. I think, They should be doing about it soon, getting their own stocks, limit “overpricing”, etc.

    I will have a PS4 before it becomes outdated. lol.

    • Out of stock means that Sony either didn’t make enough or more likely didn’t release enough for sale. You as a video game company, always hold back some of your supply to quickly refill any shipments that become damaged from the initial orders. Personally I have no desire to get a PS4. The PS3 is just fine since you cannot play Grand Theft Auto 5 on the PS4. – Thanks for your comment Marco!

  6. Wow, this is a great article. I can’t believe Amazon would jack up their prices so high rather than just list the item as Out of Stock. Nice play on words with the “great deal above the suggested retail price.” =)

    • Yeah you would think so but they were obviously just sourcing the price from two of their private sellers who were selling the units at those ridiculous outrageous prices. If I was someone who wanted to get it as a Christmas present I would either wait or get something else because the price WILL come back down once the stores get stock in again. That ALWAYS happens. – Thanks for your comment Rachael

  7. I’ve worked with Robert from the very beginning of his career. He is the most experienced game tester I have ever worked with and has seen every generation of hardware. I would highly recommend his skills as both a tester and a teacher to the up and coming QA talent of today.

    Dan Kitchen

    • It’s the great video game designer Dan Kitchen! Thank you very much for your kind words Dan. Hey everyone who reads this! Dan is the one who convinced me to start a career in the video game industry. It was the first best decision I ever made! Thanks for your comment DK! “Hey! Did you lose my aerial photographs?” πŸ™‚

  8. It all comes down to supply and demand. It you don’t want to pay the high prices, you’ll just have to wait until more become available.
    Some people just have to have the latest and greatest new toys, and will pay anything to get them, they drive the costs up.
    Nice site by the way.

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