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PS5 Software Sales Could Be Struggling Because Of Scalpers

Sony's system is sold out everywhere, but physical game sales in Japan are low enough to suggest that many of them aren't being played.

83 Comments

The PlayStation 5 released worldwide in November, but right now it's very difficult to buy one, with stock in short supply. One issue since preorders opened has been the prevalence of scalpers, including bots that automatically buy systems to then resell at a higher price. Now, figures out of Japan suggest this might be an even more severe problem than first thought.

Bloomberg reports that strong console sales are not necessarily translating into software sales. Figures they've taken from Famitsu show that the system has sold 213,000 units in Japan since launch, but the sales for physical releases of the system's top 3 games (Spider-Man: Miles Morales, Demon's Souls, and an unnamed third-party title) come to just 63,000 units.

Comparably, the Switch sold 525,000 units in its first month, and saw that almost matched with 509,000 sales for its top 3 games.

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There are numerous caveats here--because of forwards compatibility, it's likely that many customers have bought PS4 versions of certain games for less money, and digital sales figures have been on the rise. The PS5 also has a digital only version, which would drive down physical sales, too. But the disparity is great enough to signal an issue, and because the PS5 is sold at a loss--as most consoles are at launch--Sony is reliant on software sales to make money.

This could have a long-term impact, too. Bloomberg quotes Morningstar Research's Kazunori Ito, who belives that the system "could miss a critical chance to get into a good hardware-software upward spiral." This could mean that "the platform’s total revenue earned won’t be as strong as we hoped for," he says.

Hopefully, PS5 stock will stabilize in the near future--or Sony (and Microsoft) will find reliable ways to deal with scalpers.

If you want to buy a PS5--and you're not a scalper--make sure to bookmark GameSpot's PS5 Restock Updates page. We'll keep you updated when systems appear for sale again.

Got a news tip or want to contact us directly? Email news@gamespot.com

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Ives74

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Just yesterday I saw several scalper listings with prices between $900 and $1300. BUT! Most of them had price drop indicators. Some had been marked down by several hundred dollars. Seems like they aren't able to find buyers. What a shame. Golly I sure hope they didn't gamble on a big payoff and are now stuck with a pile of consoles and a HUGE credit card bill.

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Divisionbell

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Of course a big part of it is the scalpers. This release has been a joke because no one can actually get their hands on a console. Maybe if stores actually took steps to stop scalpers this would be a different story.

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Dani78

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So now I'm not sure if it's because people aren't playing. I rather think that it just doesn't have enough launch titles.

I can play a lot of the PS4 Pro on the PS5, I didn't even have to buy the games. There weren't any pure PS5 games anyway. So either the console was released too early because they didn't want to lose ground to Xbox, or it was just as intentional.

For my part, Miles Morales was way too short but it cost me 79 €. It left me with a bitter aftertaste similar to the Final Fantasy 7 Remake. Full price but only a quarter of the original. The game developers absolutely have to come up with a new pricing policy, because otherwise, I will gradually turn my back on the consoles.

I want a full-fledged game and not a series pass that costs me around € 200 to see the end. I used to buy around 20 games for a console in a year, if this continues I will only buy 4-5 games a year.

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jinzo9988

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I don't see many Japanese people getting Miles Morales. Demon's Souls would be more up their alley, but you're talking about a remake of a hardcore game and I think there's only so much appeal there with that one. I don't know what games they would be playing at the moment besides last-gen games.

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deactivated-60378ed243464

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To be fair the launch titles for both consoles was lacking. PS5 had a couple of reboots and MS had Yakuza which was awesome but was never going to be a console seller. Yes the scalping situation is terrible however I think just the lack of interest in day 1 titles has more to do with it.

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Avatar image for santinegrete
santinegrete

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Wanna regulate the market now?

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PappaFost

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Edited By PappaFost

@santinegrete: The 'invisible hand' has taken all the PS5's and put them in storage!

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Thanatos2k

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People don't buy games for systems they don't own!?

Shocking developments from Gamespot.

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KaijuKrazy

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Duh. Scalpers don't buy software or accessories. Sony (and MS/Nintendo) doesn't make money (or at least not much) off of hardware. Sony and MS have shot themselves in the foot this launch by making it a scalper's field day. They are selling nonprofitable hardware while the profitable items aren't selling

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silv3rst0rm

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You can't compare PS5 software sales to Switch sales, Reason is, PS5 is backwards compatible!

Meaning, A lot of ppl might actually buy a PS5 right now while still play their previously bought games on them. (I'm one of these, I play Ghost of Tsushima, decided to replay through Days Gone, etc...)

If you buy a PS5, you don't HAVE to buy games to enjoy it.

If you buy a switch and no games, you can't do anything with it...

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YukoAsho

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@silv3rst0rm: Not sure people are buying a brand new system SPECIFICALLY to play older games on it. Why would you do that?

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Maize84

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Edited By Maize84

Since Sony demanded Covid safety online only restrictions, the PS5's should have been sold to paying customers first: PS4 owners who had been loyal ps+ members and people who spent money on the digital front. Basically the loyal fanbase. I don't think that it should have been exclusively that, but they should have rewarded loyal customers and paying customers. Same with Xbox. The only difference is I have seen the new xbox out in the wild from time to time.

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FireDrakeZ

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Edited By FireDrakeZ

This is not good for Sony's bottomline. They are already selling the PS5 at a substantial loss per unit so they depend upon game and subscription sales to make up for that.

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Jinzo_111887

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They really should make a bigger effort into porting PS5 games to PC through Steam and GOG. If they do it correctly, it could probably offset sales lost to scalpers.

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YukoAsho

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@Jinzo_111887: I doubt we'll ever see new games from Sony appearing day-and-date on PC. Horizon: Zero Dawn was several years old before Sony floated it as a test. My guess is that, even if Horizon does well on the PC, we'll be seeing older titles come first - Uncharted, Last of Us, ETC.

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uninspiredcup

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uninspiredcup  Online

Scalpers straight up delude themselves into pretending they are something they are not. That in itself is sad.

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itchyflop

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Edited By itchyflop

ha with ps4 cross overs and remakes/remasters Sony isn't offering a reason to buy a ps5 right now let alone GET ONE which many cannot.

I have one and im playing ps4 games on it for the smoother frame rates.

How about the £70 price tag for the remaster demon souls and now £60 standard software prices.

I feel bad for people that cannot get one but believe me kids, you're really not missing out..... yet!!

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YukoAsho

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@itchyflop: Agreed. Better to wait until the system is more readily available and there are more discounted games out for it. Prices will come down for all but the most popular games pretty damn fast.

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itchyflop

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@YukoAsho:

Here's hoping they stock up quickly in the new year for the disappointed xmas day missed opportunity from Sony!!

Ha with cyberpunk being broken too its back to Chronos before the ashes or cloudpunk for now on ps4 pro (and Ghost of T on ps5)!!!

Happy holidays and a happy new year.

:)

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PsychoMantisIII

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@itchyflop: They're missing out on another frame rates, faster load times, titles that are made for ps5 or that have ps5 upgrades available already. There's plenty that's being missed out on.

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Atzenkiller

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Yeah, let's blame scalpers for everything. "It's the scalpers fault that people aren't buying games. It's their fault that Cyberpunk is so broken." If people have spent too much money on their new console because they were dumb enought to buy it from some scalper, and now don't have any left for PS5 games, then that's a different issue. But I can't even think of any PS5 exclusive titles aside from the Demon's Souls remake, so what games exactly is Sony looking to sell? Of course due to the backwards compatibility and the complete lack of PS5 games most people will be playing PS4 games. This article makes no sense in general.

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Rolento25

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@Atzenkiller: I see you didn't comprehend what the article was saying.

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PsychoMantisIII

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@rolento25: He didn't... not even close

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SkyHighGam3r

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"Limit 1 per customer"
How fucking hard is that?

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definer0

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@skyhighgam3r: you'd have to use some form of ID system. Otherwise the bots just make a bunch of accounts.

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SkyHighGam3r

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@definer0: This is online retail we are talking about. Base it off of shipping address, problem solved.

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Atzenkiller

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@definer0: And how do you make a bunch of accounts with varying names and addresses? It's not hard to limit online sales because you can't just order product under a different name but still have them delivered to your address.

The best solution for dealing with scalpers is to use a lottery system. Let everyone who's interested sign up and then let luck decide who gets a console. That evens the odds for everyone. If scalpers were of course somehow able to create multiple accounts under different names and addresses, then they'd still get an advantage. But otherwise their chance of getting 1 console would be the same as for everyone else. So it would drastically limit that practice. Not that it would be able to do anything about people's stupidity and their willingness to pay double to some random jackass of course.

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Avatar image for deactivated-64efdf49333c4
deactivated-64efdf49333c4

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Well, that explains why the boxing day flier I got lists a whole whack of the PS5's line-up for half off. Remember, when all of you were whining about a $10 price increase, I kept saying it won't matter because you just need to wait for a discount? How's 50% just a month into the new gen sound?

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FireDrakeZ

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@Barighm: Better yet. If you really are patient, just wait for them to appear on PSNow a few years down the road when they are included with your sub.

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Atzenkiller

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@Barighm: What a genius. Just wait until any game you want drops to $10 in price. For some games you can wait until the end of the gen for that to happen. And higher over prices also means higher prices during sales. If a game was half off at a standard price of $60, then it will still be more expensive when it's half off at a standard price of $70. Yeah, zero difference indeed. You just gotta wait a bit longer until prices are the same as they used to be. It's that simple.

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Avatar image for deactivated-64efdf49333c4
deactivated-64efdf49333c4

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@Atzenkiller: Be sarcastic all you want, but the fact is the lot of you were bitching like crazy over a $10 increase. So I said "just wait a bit" and boom! 50% off. In a month. And hey, maybe Cyberpunk will actually work better by then.

So keep on snarkin'. You'll be an ass and I'll still be giving people GOOD, proven advice.

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YukoAsho

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@Barighm: Just about. Unless it's Call of Duty or a similar mega-mover, game prices will come down quickly, just like they did THIS generation.

I don't see why "be more responsible in your spending" is such an inflammatory statement.

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Vidikron

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I’d be curious to see the sales numbers for the US. One, because the demand seems absurd here. But, two, because we have a fair number of retailers forcing people to buy bundles. Those bundles often include multiple physical games which would artificially inflate the attach rate.

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Radar

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Sony and MS are eventually going to stop making consoles once they hit a certain number without increased game sales. Then the scalpers are going to have to sell at MSRP or maybe less.

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Atzenkiller

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@Radar: You really didn't think this through, did you? No matter how many consoles Sony manages to ship, they will all sell out completely right away for at least the next few months. And the only reason for scalpers to keep sitting on their stock would be because they want to sell them off slowly. Though I doubt they'll ever be able to make as much money from them as they can now during the pre christmas period.

But for a console manufacturer to stop producing consoles would mean going bankrupt. No company would ever be stupid enough to consider anything like that. And there is absolutely no reason for it either as I've already mentioned. This whole article is a pile of crap as Sony is making only more, not less sales of games due to BC. Without it there would indeed be very few game sales on PS5, for the obvious reason that there's not really any PS5 only games out yet. And because of the way too low supply of consoles. Sony could make a lot more money from game sales if they could provide more consoles. But they seem too cautious when it comes to ramping up production.

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Avatar image for deactivated-64efdf49333c4
deactivated-64efdf49333c4

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@Atzenkiller: You don't have enough clout or comprehension to be so snarky. Radar isn't entirely wrong in a simplified sense, nor was he entirely serious as his post history suggests.

And let's not pretend you have any idea how their production process works. I'm sure they would increase production if they could.

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smoke_dog_4ever

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@Atzenkiller: agreed. I worked for Gamestop during the XB1 and PS4 launch and we had problems with scalpers back then (though not as bad as the current situation). The problem back then for scalpers was that both MS and Sony were regularly pumping more consoles into stores on a weekly basis. I had a guy who managed to get about 10 XB1s and PS4s alone from the two stores in our city, not to mention the ones he got from Walmart and other stores in nearby cities. He sat on his stock on eBay for about a month before he finally had to bring the cost down to MSRP just to keep from losing money on them because MS and Sony kept up with demand and kept consoles in stores.

This hasn't been the case this time around and covid has so much to do with it due to health concerns and decreased staffing. It's why the RTX 3000 series is sold out everywhere - high demand and low supply. It really sucks, but this was the perfect year for scalpers to do their thing because of all the circumstances.

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tsunami2311

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the scapling problem is easliy solved, problem it just wont be done.

all systems sold have serial number attach to if said serial number is found to be resold on the many sites it easily be pulled down Also what UK is trying to do to curb this is could be done all over, but again it wont be done,

Most system sold are probably not even in hand of actual users, the scaplers have. and I sorry but any one buy it at 2 or 3 times it price is stupid

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YukoAsho

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@tsunami2311: No.

First, the US has the first sale doctrine, which would make any attempt to disable reselling illegal on the face, so they couldn't do what the UK is doing. Not sure about the EU, but I imagine they're even more strict about that than the US.

Secondly, it'd be a great way to piss off GameStop and other retailers that deal in second-hand items.

The scalping issue is very much a temporary thing, and it's not worth risking permanent damage to retailer relations to fix.

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Thanatos2k

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@tsunami2311: You honestly believe we shouldn't be able to sell our consoles that we bought to other people at any point?

Are you serious? You want console DRM???

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Jinzo_111887

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@tsunami2311: Here in the states, we have something called the First Sale Doctrine, which means we can resell stuff we bought. That means such a move would be illegal.

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SkyHighGam3r

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@tsunami2311: That doesn't even make sense, then no one could ever sell their console.

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hedgen

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I refund my demon soul (ps5) preorder when i didn't get the console ps5. I know the price will eventually drop.

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singhellotaku

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I mean....obviously

This is why its baffling retailers aren't doing more to fight them. Yes they get the money for the consoles either way...but they have shelves full of games and accessories that aren't being touched because nobody actually has the consoles.

They are at least lucky so many games and accessories are cross gen, so there is some incentive for xbox one and ps4 owners to buy them anyways.

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deactivated-64efdf49333c4

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@singhellotaku: Given the overall profit retailers get from selling games, usually not much more than 15% unless they buy in massive bulk (and even then, it's probably not much more than 25%), there is an argument to be made that retailers might stop selling gaming consoles entirely. With physical sales losing out to digital, why should retailers fill their shelves with big boxes that sell for maybe 10% profit, with any issues likely handled by the retailer in terms of refunds, when they could fill that same amount of space with, like, 10 GPUs or 20 processors or phones that sell for more profit (and are small enough that the manufacturer handles refunds and returns)?

If you really think about it, gaming is actually sucky business for retailers.

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Atzenkiller

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@Barighm: You've said it yourself: around 15% profit from a game sale. But somehow ony 10% from a much more expensive console would not make it worth it? You're not making any sense. Why do retailers sell consoles? Because you can't buy games if you don't own the console used to play them. And because people who buy a console also tend to buy games with them. Where's this stupid brain fart about selling consoles not being profitable even coming from? Especially now where sites are going down every time they add a bunch of consoles for sale again.

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Avatar image for deactivated-64efdf49333c4
deactivated-64efdf49333c4

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@Atzenkiller: You can't read, confirmed. Or do math. Or you're just cherry picking. Regardless, you're being a dick about it.

The crux of my comment is based around total profit vs. shelving space, a point you didn't even bother addressing. There's a reason why smartphone stores are EVERYWHERE, with DOZENS per mall, at least one in every plaza, and tons of other stores include services even if they don't have anything to do with phones. Gaming? Everything not a big retailer is pretty much going away, and even the big specialty retailers are struggling with digital now a thing. Yeah, this hugely profitable business is TOTALLY worth it just because the big retailers' websites are going down...I mean, EVERYONE can get into the business and knock it out of the park, no prob! They don't have to sell all of their games used at a huge mark-up to make a profit. That's TOTALLY why I went on to open that gaming store liked I planned, and when I changed my mind and sold my stock to some other guy, he TOTALLY went on to score big and didn't go out of business within a year.

Stop replying to me, kid. I'm not going to read your replies anymore.

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Faellin

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Well duh. Nobody is going to buy games or accessories for it because its impossible to actually get the console!

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