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Scalpers don't cause shortages and they provide value for those who have the money but not the time to seek out a product

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arvfab

Banned
Wondering if all these reverted Robin Hoods are all declaring the profit they make by extortion in order for it to be regularly taxed....

And at least here in Germany, you need a license to sell stuff with (probable) high revenue.
 
Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
 

MiguelItUp

Member
Yeah, no. They typically flaunt how much "success" they have, which just creates more of them. Meanwhile people are trying to order said products at the MSRP they're at, and they're unable since they're getting scalped ASAP.

I have zero respect for them. Wholeheartedly.

The people who shell out the money aren't much better either, just really pathetic, lmao.
 
Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
Customers have a willingness to pay threshold. The price has to be adjusted accordingly. Scalpers can't just buy up all stock and demand more than what customers are willing to pay. You are fundamentally misunderstanding how pricing works. By your logic, why aren't scalpers demanding $5000?
 
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TintoConCasera

I bought a sex doll, but I keep it inflated 100% of the time and use it like a regular wife
Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
The question is... Would customers be willing to pay 900$? Because if not, scalpers would get fucked at that point.
 
Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
I don't think so. Look at PS3 or Xbox One and see what happens when you are too expensive.
 

brian0057

Banned
Lets say Sony in this example would raise the price of the. pS5 to €700, to make a little profit to begin with.
Nothing would change...the PS5 is still not in stock and hard to get. Scalpers would still buy a amount of PS5's using bots. And they would try to sell them for $900,- .
The poster of this topic makes no sence at all.
Raise the price more.
Let Sony and Microsoft compete with the scalpers.
At least the former can supply more consoles. That will force scalpers to lower their prices.
And that, in turn, will force Sony and Microsoft to lower their prices as well.
And then the cycle begins anew, steadily lowering the price until it reaches equilibrium.
 

TheDreadLord

Gold Member
Yes but that is an online store issue, no?
They need to create mechanics to avoid that but they really care? They are selling the product after all.
Scalpers doesn't affect the online store or Sony at all... it doesn't affect the market.
If it is a store policy and you are in violation then you are in the wrong. However, if store doesn’t put effort in enforcing their terms then they aren’t being compliant. So, actually, the main culprit here is the online retailer not the scalpers (assuming that they do have a policy against bot usage). But you are correct, scalpers do not affect the market, they are just a byproduct of scarcity.

Get the fuck outta here with that shit. It’s clear that there are surplus consoles out there with scalpers because you see the outrageous price they are charging them online.

The whole business model is to undercharge for consoles to get people buying more games so your whole argument is shot down right there. Console makers wouldn’t ever charge what they are ‘worth’.

Scalping of any kind is horseshit.

Anyway, I’ve got more important things to do like stare at walls than read this madness.
Sorry, but this doesn’t make any sense. There is a thing called demand and a thing called offer. We are on the demand side, everyone wants a next gen. Sony and MS (with the help of online retailers) are on the offer aide and can only produce X units which is a few times lower than what “demand” is. Some people have spare time/bots set to search for surplus units. They get hold of these and sell them for a premium. There is still “demand” willing to pay for the premium. So what is wrong here? You should complain with Sony, MS, online retailers…. And the demand willing to pay extra for a luxury item. I have waited more than a year but I bought mine for retail price (directly from Amazon).
 
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zcaa0g

Banned
Scalpers are essentially making use of a market failure - namely Sony/Nvidia/AMD/etc. failing to increase the prices of their products even though the supply can't meet the demand (due to a chip shortage). The fact of the matter is that there isn't enough products at MSRP for everyone who'd like one, even if you eliminated all the scalpers who buy up the products at MSRP. So either you discriminate by price (which scalpers do) or by time/luck (hitting F5 at the right time on Amazon, checking Twitter bots all day). I don't understand why the latter is more virtuous than the former. Frankly, when it comes to luxury products I prefer an auction over a lottery. 🤷‍♂️ Scalpers buy products at MSRP, and redistribute it to those who are willing to pay more for them, thereby providing value as the recipient doesn't have to waste their time following Twitter bots day and night. They don't affect supply because they're obviously incentivized to resell. They do affect demand as the demand for a $1500 RTX 3080 is lower than for a $800 3080 but really, that's how price discovery works. If your price is such that the product is out of stock all the time, you've priced it too low.

If you hate scalpers, you should beg for the manufacturers to raise the console and GPU prices to their actual market value (they probably don't do it for brand perception reasons or otherwise). Currently, the products are simply priced too low.

edit: This is neither clickbait nor cringe lol. I've responded to literally everyone in good faith. I'm just correct and I'm sorry it hurt your feelings.

Hi scalper. Get a real job and quit running up your credit cards and paying the minimum every month.
 
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avin

Member
Scalpers buy products at MSRP, and redistribute it to those who are willing to pay more for them, thereby providing value as the recipient doesn't have to waste their time following Twitter bots day and night.

Sure, but I still don't have to like them. There's all sorts of people doing things that are perhaps legal, but I still think they've wasted their lives.

avin
 

Bo_Hazem

Banned
I agree, scalpers are the Robin Hoods of these times. We are the evil rich kids, let's just deal with it.

Baddie GIF by Giphy QA
 
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Sygma

Member
Would you acknowledge that there is insufficient supply for the RTX 3080 at MSRP? That is obviously the case. Let's say I want an RTX 3080 really bad. What options do I have? I could
  1. wait until they're available (which could take years)
  2. Check Twitter bots and other sources that notify me when an RTX is in stock
  3. Pay a premium and get the product right away
Provided I have the money, option 3 is by far the most appealing to me. I don't have to wait and I don't have to waste my time on checking stores and bots. Do you acknowledge that value has been provided? The scalper essentially secured me a product and I'm paying them for their service.
There's literally zero value in playing with time, it's essentially deeming it profitable

What you're describing is what freemium games are providing. It's all artificial. The funniest part here is that there are no shortages, just modern means of getting products which tech savy people are banking on no more no less.

Edit : I'm working for Dyson (engineer / expert), the real difficulty isn't the chip shortage which again doesn't exist. It's the distribution means which are literally blocked. We had to change our chain of supply and establish new contracts and despite having sold less volume compared to last year we still had a nice profit
 
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Thank you Scalpers for charging me more for a product I want that I might otherwise be able to find cheaper from a retailer. What would we do without you?
I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
 

RPSleon

Member
Christ you're so fucking dumb.

Scalpers dont provide value. Theyd provide value to people by not existing, because the product would then be available.
Theyre just a useless middle man.
 

RPSleon

Member
I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
I got a ps5 on day 2, and work 12 hour days with constantly changing shift patterns.

Youre talking for yourself, not everyone. Id have got it day 1 if it wasnt for day 1 scalping. Got lucky day 2 on not getting shit snatched from my basket before checkout.
 
Christ you're so fucking dumb.

Scalpers dont provide value. Theyd provide value to people by not existing, because the product would then be available.
Theyre just a useless middle man.
If you disagree that they provide value, you're just braindead. I won't even debate this anymore, it's literally in the OP and I'm just correct. There's isn't a single viable argument against the fact that they provide some value (that you personally may or may not value). Frankly I'm not sure how some of you guys scrape together the brain capacity to turn your computer on on a daily basis.
 
Customers have a willingness to pay threshold. The price has to be adjusted accordingly. Scalpers can't just buy up all stock and demand more than what customers are willing to pay. You are fundamentally misunderstanding how pricing works. By your logic, why aren't scalpers demanding $5000?
Cous nobody would pay $5000 for a $500 console. When you ask to much you would sell nothing...
 

AGRacing

Member
As usual it's not as black and white an issue as everyone wants it to be.

Bots and warehouses full of sniped PS5s being sold at twice the price each.... yeah.... those guys should be sought out and I'd say probably fined.

But here's another angle....

In 2005 I waited in line... overnight.. in the first blizzard of the year.. to get an Xbox 360. You'll see in the new Xbox documentary it was raining in New York... well in Windsor, Ontario it was cold as shit. A couple of guys in the line had called in propane heaters. It was absolutely insane. I got in line right after work the day before... my father was good enough to bring me thicker clothes. That morning a "mom and dad" strolled into the parking lot with coffees a half hour before opening thinking they were brilliant for just walking up to the place before it opened. When they saw the lineup they were slack jawed. Now... if they caught me on my way out and said "Look... we need this for our kid but had no idea demand was this crazy... we know you froze your ass off last night.. we'll give you twice what your paid for this." I'd tell them to get lost... BUT there would be nothing wrong with saying "OK" either. There are "one to one" transactions like that on whatever your local internet marketplace is all the time. For anyone BUT bots... it can take real time and effort to procure one of these.


I ordered a PS5 on that accidental early pre order unlock right after the conference. Remember that mess? Best Buy. But immediately afterward I had heard the retailer "jumped the gun".... and maybe wasn't allowed to do what they did.. so out of paranoia I managed to swing an Amazon pre-order the following day. I was going to cancel one... but then Amazon send me a message saying "we might not get you a console on launch day.... but you'll eventually get one". So I kept both pre-orders. I asked my wife to find a parent looking for one on Facebook and sold it to them for 800CDN. About 200+ below what people were selling them for. I spent a whole day refreshing web pages and having 20 tabs open and not leaving my chair for hours at a time over that pre-order.... and my time isn't free. She was extremely happy she found me as well. Profusely thanked me.

Months later I randomly went to the best buy site and noticed it was slow... I wondered if it was because of a ps5 restock and guess what? It was... didn't buy one but I had the opportunity... so this idea that it's "impossible" now. It's not. But it does take time and effort.

I'm sorry some of you still don't have the PS5s that you want.... but I think if most of you who wanted them put in the effort you'd have one. You have to prepare. The bullshit website buying game is the modern day version of 2005s blizzard I sat through.... so bite the bullet and metaphorically freeze your asses off.

Or just wait and pay retail. In 2023.
 
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CeeJay

Member
Although I don't like scalpers and disagree with them doing it I cannot fault the logic of the OP. He has articulately responded to every point of those who have tried to refute him and argued his case well. I personally would never pay over rrp for a product and if i can't get it for the rrp then I simply won't buy it but there is clearly a lot of people who will.

I think that the scope of scalping in the case of GPUs and consoles seems fairly well defined but where abouts do you draw the line, what exactly is price gouging or scalping? Is it merely buying something that is supply constrained for a lower price and selling at a higher one?

If someone deals in the secondhand games collecting market, buying items cheap using various techniques and then selling them on for a much higher price, is that scalping?
Antiques dealers?
Stock markets?

Let's use a GPU example. If I buy a RTX card at rrp and realise that it doesn't fit in my PC case. I sell the card on Ebay on an open auction with a $1 starting price and it eventually sells for a much higher than rrp price. Does that make me a scalper?
 

RPSleon

Member
If you disagree that they provide value, you're just braindead. I won't even debate this anymore, it's literally in the OP and I'm just correct. There's isn't a single viable argument against the fact that they provide some value (that you personally may or may not value). Frankly I'm not sure how some of you guys scrape together the brain capacity to turn your computer on on a daily basis.

They dont. They just end up being peoples only option for something they have waited for and looked forward to. No ones gonna be like "im sure glad i got ass fucked by that scalper. What a good guy". Theyre just like "i guess ill have to take a loss for this thing ive wanted for ages". I dont agree with people buying from scalpers though. They are doing themselves a disservice.

Theres zero value. Youre just really good at justifying it to yourself, because stuff SOUNDS a bit like it makes sense. Literally like flat earthers do. Thats how youre coming across.
 
If Sony, XBOX, NVIDIA, and AMD raised their prices, then scalpers would also raise their prices. Scalpers aren’t taking advantage of the market value, they’re taking advantage of desperate consumers.

People don’t buy from scalpers because it’s “convenient” or “time saving.” People buy from scalpers because it’s the only thing available. Walking into a grocery store and picking up a new console for half the price a scalper is charging is as convenient as it gets.
 
If Sony, XBOX, NVIDIA, and AMD raised their prices, then scalpers would also raise their prices. Scalpers aren’t taking advantage of the market value, they’re taking advantage of desperate consumers.
If all these manufacturers raised their price to the products' market value then scalpers cease to exist. They cannot demand more than what the market will bear. You are wrong.

People don’t buy from scalpers because it’s “convenient” or “time saving.” People buy from scalpers because it’s the only thing available. Walking into a grocery store and picking up a new console for half the price a scalper is charging is as convenient as it gets.
No, it is possible to get a PS5 or an RTX 3080, it's just extremely time consuming and impossible for very busy people. Going to a scalper is more convenient.
Use a scalper cuz I don't have the time?

Yes, its much quicker to find an underground market and pay 2x the price than log onto my existing Amazon, Target, Microsoft, Walmart accounta and add it to the cart and complete payment for MSRP.
Except the demand outstrips the supply so you can't do the latter, with or without scalpers.
 
Raise the price more.
Let Sony and Microsoft compete with the scalpers.
At least the former can supply more consoles. That will force scalpers to lower their prices.
And that, in turn, will force Sony and Microsoft to lower their prices as well.
And then the cycle begins anew, steadily lowering the price until it reaches equilibrium.
And there is the problem, Sony and MS cant produce more consoles because AMD cant produce more chips. Raising the price of the consoles would have no effect. The scalpers still would buy them and would take a little les profit, so the scalpers would make profit anyway.
 

TintoConCasera

I bought a sex doll, but I keep it inflated 100% of the time and use it like a regular wife
The only thing I hate more than scalpers are fucktards paying scalper prices. They’re the ones they need to be tarred and feathered.
While I can agree, at the end of the day it's their money and they should be free to use ot however they want.

I would put the blame on the big stores, allowing themselves to sell more than one unit per customers and not giving a fuck about bots.
 
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And there is the problem, Sony and MS cant produce more consoles because AMD cant produce more chips. Raising the price of the consoles would have no effect. The scalpers still would buy them and would take a little les profit, so the scalpers would make profit anyway.
Scalpers only exist in a realm where products are mispriced. Unless you have one scalper buy up all the stock and thereby kill all competition, scalpers can demand what people are willing to pay given the supply, and not more. People claiming it's an "artificial increase" in price are just wrong, it's literally an organic way of price discovery, much like an auction.
 
If all these manufacturers raised their price to the products' market value then scalpers cease to exist. They cannot demand more than what the market will bear. You are wrong.


No, it is possible to get a PS5 or an RTX 3080, it's just extremely time consuming and impossible for very busy people. Going to a scalper is more convenient.
The market value for a new console is $500, not what the scalpers are charging. You know that, right?

Scalpers can absolutely demand more money than they already are. What proof are you basing these opinions on?

Scalpers secured hundreds of thousands of consoles and GPUs. If they didn’t, those products would have been available for customers to buy in the first place. You act as though scalpers fix the shortage problem. The fact of the matter is there is a limited supply. Scalpers only make it easier for the desperate to buy a product. I’m guessing that was you and this thread is your way of processing what you felt like you had to do.
 

Sygma

Member
I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
You make no sense at all, the thing is is that scalpers can set up massive buyouts instantly which you wouldn't be able to do physically or whatever else and bypass the entire checkout systems online in order to redirect all the products toward them so they can make a profit while spinning it like you're doing right now.

It's just again using modern means to get profits for their own selves, hence value on the reselling
If you disagree that they provide value, you're just braindead. I won't even debate this anymore, it's literally in the OP and I'm just correct. There's isn't a single viable argument against the fact that they provide some value (that you personally may or may not value). Frankly I'm not sure how some of you guys scrape together the brain capacity to turn your computer on on a daily basis.
The value is just on them making a profit, everything else is irrelevant. Paying more for the uncertainty of being ass fucked or not should a rma enters the equation is where the value is for the customer. That and undervaluing their time
 
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The market value for a new console is $500, not what the scalpers are charging. You know that, right?
No, this isn't true. The market value is governed by what people are willing to pay, not by the arbitrary price the manufacturer sets. Put your PS5 on ebay for 1 Dollar and see where that auction goes. That right there is the product's market value.

Scalpers can absolutely demand more money than they already are. What proof are you basing these opinions on?
Scalper cannot demand more than what people are willing to pay. That was my statement and it's (pretty much tautologically) true. Currently, a PS5 costs $500. The market value (or ebay price) is approximatly $700. That is, the maximum price customers are willing to pay for it given the current supply. If Sony increased the price to $600, scalpers would still exist because they can still make a profit. This is similar to the economic principle of arbitrage. If Sony matched the market value of the product, then scalpers would cease to exist because they cannot demand more money as customers aren't willing to pay above the market value, which Sony is already pocketing.
Scalpers secured hundreds of thousands of consoles and GPUs. If they didn’t, those products would have been available for customers to buy in the first place.
You are missing a crucial thing: They would have been available at MSRP to those who had the time to be present during the time when the product was in stock. If I'm a full time employed individual, I'm probably out of luck.

You act as though scalpers fix the shortage problem. The fact of the matter is there is a limited supply. Scalpers only make it easier for the desperate to buy a product. I’m guessing that was you and this thread is your way of processing what you felt like you had to do.
They don't fix the shortage. Scalpers secure you a product in a heated, low supply market without you having to waste time searching a product.
 
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chixdiggit

Member
I think the delusion that you would've found a console/GPU if it weren't for scalpers is probably one of the main reasons people get angry at them. Can you acknowledge that the supply currently outstrips the demand? Do you understand there isn't enough consoles and GPUs for everyone? If we eliminated all scalpers, their stock would go to those who were really eager to get a product and camped Amazon and Twitter day and night. Let's say I'm employed full-time and I don't get to do that - I would be shit out of luck. I can't compete in that game with college students or whatever. And if it wasn't for scalpers, I wouldn't be able to buy the item at all. Why is it that distributing items by time investment is more virtuous than by price? Can anyone answer this?
Can you acknowledge that the supply currently outstrips the demand? Yes
Do you understand there isn't enough consoles and GPUs for everyone? Yes
Why is it that distributing items by time investment is more virtuous than by price? Because the people camping out are the end consumer. They are getting it for themselves not to make a profit off of somebodies hobby.
 
No, this isn't true. The market value is governed by what people are willing to pay, not by the arbitrary price the manufacturer sets. Put your PS5 on ebay for 1 Dollar and see where that auction goes. That right there is the product's market value.


Scalper cannot demand more than what people are willing to pay. That was my statement and it's (pretty much tautologically) true. Currently, a PS5 costs $500. The market value (or ebay price) is approximatly $700. That is, the maximum price customers are willing to pay for it given the current supply. If Sony increased the price to $600, scalpers would still exist because they can still make a profit. This is similar to the economic principle of arbitrage. If Sony matched the market value of the product, then scalpers would cease to exist because they cannot demand more money as customers aren't willing to pay above the market value, which Sony is already pocketing.

You are missing a crucial thing: They would have been available at MSRP to those who had the time to be present during the time when the product was in stock. If I'm a full time employed individual, I'm out of luck.


They don't fix the shortage. Scalpers secure you a product in heated, low supply market without you having to waste time searching a product.
Both Xbox and PlayStation stated that they sell consoles at a loss on purpose to get customers into their ecosystem. That’s how the market value of consoles are governed. That is a fact.

You’re right that scalpers can’t demand more than what people are willing to pay, but you’re wrong about pricing. People will chalk over $2000 for a PS5 if they’re desperate enough. Scalpers do not determine market value, they only exploit the desperate.

You seem to be the one missing crucial information and, worst of all, lack of critical thinking. There were always enough customers wanting these products. Scalpers just managed to get them first. This is especially so with the bots they use online. They’re beating everyone to the sales so they can turn around and exploit the desperate.

Without scalpers, the product still wouldn’t be readily available on store shelves because of the high demand. They only make the product available for the desperate. They do not help customers find a product.
 
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brian0057

Banned
And there is the problem, Sony and MS cant produce more consoles because AMD cant produce more chips. Raising the price of the consoles would have no effect. The scalpers still would buy them and would take a little les profit, so the scalpers would make profit anyway.
Even if AMD produces only 10 chips a month for both consoles, scalpers don't produce the machines.
They can only get them from the console manufacturers who theoretically would also sell them at the same price.
Either way, it's the scalper that has to lower the price if he wants to sell the device.
Isn't economics fun?
 
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Can you acknowledge that the supply currently outstrips the demand? Yes
Do you understand there isn't enough consoles and GPUs for everyone? Yes
Why is it that distributing items by time investment is more virtuous than by price? Because the people camping out are the end consumer. They are getting it for themselves not to make a profit off of somebodies hobby.
Why do you value the happiness of someone who camped in front of a store higher than someone who works full-time and doesn't have the time to do this, but does have the money to pay a premium in a secondary market? The latter individual put his labor/money into getting a PS5, the former used his time as a resource. Why is one better than the other? They're both "end consumers", that's not a distinguishing factor.
 
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Sygma

Member
Op is just mad that the law is currently creating a bill toward the issue, it's the court you have to convince bro
 

Sygma

Member
Seriously tho time as value is the same logic than game companies selling xp boosters while obviously padding their games, and again freemium games forcing you to pay in order to be satisfied with whatever you got in mind if you're not patient enough.

scalpers of FE editions in particular must be laughing pretty hard, good for them tbh there's a never ending supply of retards on earth anyway
 
Seriously tho time as value is the same logic than game companies selling xp boosters while obviously padding their games, and again freemium games forcing you to pay in order to be satisfied with whatever you got in mind if you're not patient enough.
I don't oppose either business model. I think preying on people who are prone to a gambling addiction is unethical (especially when a game targets minors), but if you are of a sound mind and you decide that the XP booster is worth your money, go for it. You should absolutely be allowed to make, what I consider suboptimal, decisions in a society. Not sure when the gaming sphere turned into the Soviet Union.
 
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