What is the Average Resale Price for a PlayStation 5?
The extremely high demand and limited supply of PlayStation 5 consoles has led to lucrative resale prices above retail value. Used PS5s are selling for $380 to $715 depending on model and condition. For those looking to buy a PS5 right now, expect to pay a significant premium over the $399 to $499 MSRP.
When will this change? Let‘s take an in-depth look at the PS5 resale market.
Retail Pricing Set by Sony
Sony launched the PS5 in November 2020 with two model options:
- PS5 with disc drive – $499.99
- PS5 Digital Edition – $399.99
These Manufacturer‘s Suggested Retail Prices (MSRP) remain unchanged for the U.S. market nearly two years later.
Limited Availability Driving Resale Demand
Despite no price hike from Sony, purchasing a PS5 for the standard $399 to $499 cost is extremely difficult. Production constraints due to chip shortages and supply chain issues have severely limited retail inventory.
Sony CFO Hiroki Totoki stated that "demand still exceeds supply even after two years from launch." This scarcity has pushed many buyers to resale markets willing to pay higher prices.
Current Resale Price Ranges
The constrained supply combined with huge ongoing demand has led to PS5 consoles commanding premium pricing in the resale market:
| Console | Used Price Range | New Price Range |
|---|---|---|
| PS5 Disc Edition | $380 – $550 | $550 – $715 |
| PS5 Digital Edition | $340 – $460 | $460 – $600 |
Data source: StockX
These inflated resale prices represent a 20% to 50% markup over the original MSRP that Sony sells them for.
Peak Pricing Over $1,000 in Late 2020
The PS5 resale market was even more outrageous in the months immediately following launch.
According to PriceCharting, the average new PS5 price peaked at $1,055 in November 2020!
"It was total mania in the early days with resellers flipping PS5s for immense profit," notes Andre, a long-time eBay seller.
Limited supply and launch hype fueled this scalping frenzy. However, as production has modestly increased, prices have cooled to current levels.
Factors Allowing High Resale Prices
How can resellers get away with charging $600 to $700 for a $500 console? Several key economic factors enable these high markups:
- Sky-high demand – Millions of eager gamers with money to burn
- Low supply – Chip shortage limiting Sony‘s production
- Reseller dominance – Scalpers snatch up what little inventory exists
- COVID impacts – Global crisis disrupted manufacturing and logistics
This perfect storm of high demand and ultra low supply has allowed resellers to name their price – and desperate buyers have paid up.
When Will Resale Prices Decline?
Currently the PS5 resale market remains highly favorable for sellers profiting off the supply-demand imbalance. But when can buyers expect more normalized pricing?
Industry analysts like DFC Intelligence predict the console shortage may last "through 2022 and into 2023." This indicates inflated resale prices are likely to persist for the foreseeable future.
However, as Sony works tirelessly to ramp up production, supply will gradually catch up to demand. This should slowly drive resale prices back towards fair retail value. But patience will be required.
The Value Proposition of Paying Above Retail
For gamers debating whether to pony up $500+ for a PS5 right now, the key question becomes: Is gaining immediate access worth the premium pricing?
The PS5 is an amazing console that delivers a true next-gen gaming experience. However, PS4 games still look great and gives access to most of the same titles. There are valid arguments on both sides.
Ultimately it comes down to your budget and passion for early adoption. Keep saving or wait it out until supply rebounds if the price isn‘t right.
Final Thoughts
The PS5 resale market has enabled dramatic markups over MSRP thanks to the laws of supply and demand. As production ramps up over the next 12-18 months, expect used prices to gradually decline to the $400 to $500 range.
Until then, sellers hold leverage to charge hefty premiums to eager early adopters. With some patience, cost-conscious buyers can hopefully snag a PS5 for retail value soon!