22-year-old reseller nabs 200 PlayStation 5s, makes $40,000 in sales - Business Insider

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11/27/2020 4:19:00 PM

How one reseller nabbed 200 PlayStation 5 units and made over $40,000 in sales in less than a week, as gamers scrambled to get their hands on the console

Business Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.

The PlayStation 5 sold out almost immediately after launching on November 12 in the US.Many people who managed to nab consoles were resellers who used bots, or software scripts that expedite the checkout process online. One reseller, Mike F, nabbed 221 gaming consoles and made more than $40,000 in sales in less than a week.

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"I know my way around sneaker releases/reselling, and these were very similar procedures," the 22-year-old explained. "So I knew exactly what to do."Visit Business Insider's homepage for more stories.Sony's recent launch of the PlayStation 5 was frustrating for many gaming enthusiasts. The consoles, which were released in the US on November 12, sold out almost instantly. The same happened last week on launch days in the UK and across Europe.

In many cases, people looking to buy and resell these units at a premium were to blame for the quick depletion of stock. While the PS5 was available to fans via preorder prior to launch day, retailers like Walmart and Best Buy, among others, opted to sell the consoles exclusively online due to the pandemic on a first-come, first-served basis. headtopics.com

To secure the next-gen consoles, some resellers used a method that is popular among the sneaker community. Resellers, or software scripts that expedite the checkout process online.Read more:How Nike unwittingly turned 'Got 'Em' into a symbol of hope and glory in the increasingly competitive sneaker world

One reseller named Mike F, who asked that his full last name be withheld to security reasons, said he managed to buy 221 PS5 consoles at retail during the US launch. In less than a week, the 22-year-old managed to resell more than $40,000 worth of the new gaming console, according to payments received on his PayPal account, which were viewed by Business Insider. 

The PS5 retails for $499.99, with the digital-only edition going for about $399.99. However, consoles have been reselling for upwards of $1,000 on platforms like eBay, StockX, and Instagram. And those who are selling them are making a killing. "I did use bots and also purchased manually online," Mike told Business Insider in an interview conducted over direct messages on Twitter. "I used every resource possible."

While he still has more units in his stock, he is confident he will have no issue selling out, especially as the holidays approach.Resellers are infiltrating everything, from sneakers to gamingMike is no stranger to the resale game. The 22-year-old has been reselling sneakers and other items since 2016. He dropped out of college in 2017 to pursue the business full time. headtopics.com

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With the money he won he should buy thousands of Covid vaccines and sell them for 10 times more than he paid for them 'what he does is legal' But 'the use of bots is illegal' Wtf ?! L'usage de bots devrait être puni par la loi. Genre 20% de chaque article acheté avec un bot en amende ça va les détendre.

This is not business related, now i know business insider is not a serious source of information c'est à cause d'un connard comme lui que beaucoup n'ont pas encore pu acheter la ps5 ! Seriously, he got his hands on 221 from retailers. Ppl shouldve only been allowed to just get 2. Fuck is wrong with the system like.

Seriously, he got a total of fucking 221 from retailers? Bruh ppl shoullsvw only They shouldn’t have hidden his last name and made him pay for being a scum Go to hell Not a good article. Not business related. This is a story about 1 scumbag hoarding new consoles to prevent others who really want 1, buying one, then doubling the price just to take advantage of those people. IMO shouldn’t be promoting these people.

- Why are the only numbers quoted just total sales? That's not how business works, right? Wouldn't it make more sense to report gross profits only if you also include things like costs of goods sold/net profits/etc.? Reporting just total sales is puzzling. _Fangeez 👀👀👀 thank you very much for your work