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John Carmack proposes console and GPU auctions to eliminate market scalping



Id Software co-founder John Carmack has proposed a new approach to combating the scourge of scalps and retailers that take advantage of the global shortage of semiconductors: the auction of new consoles and PC hardware.

The supply of PS5 and Xbox Series X / S consoles has not been able to keep up with demand, while PC hardware such as Nvidia’s latest range of RTX graphics cards have also been snapped up and resold for a price that includes a heavy surcharge. . When the figures were last collected, it was estimated that dealers had earned over $ 82 million in profits.

Carmack̵

7;s idea is for Sony, Microsoft and Nvidia to cut middlemen from the business and auction the console inventory themselves. Will this initially lead to incredibly high bids from interested buyers? Absolutely, but Carmack believes that this strategy will cut retailers from acquiring new generation consoles and making money afterwards.

“Given the shortage and speculation of things like 3090 GPUs and new consoles, it seems like we really wanted better with a transparent auction system directly from the manufacturers and a more efficient market,” wrote Carmack. “The world of sales channels prevented it in the past, but we can move past it for many products. There would be a lot of indignation over reported prices outside the gate, but the removal of intermediaries would eventually be better for consumers in the end.”

In another post, Carmack also mentioned that the current low availability of these consoles is still beneficial for Sony and Microsoft’s business, as the consoles have consistently sold out in minutes every time new stock is brought in. Fighting the retail market by pricing these consoles higher can hurt the current consumer demand for these high quality items.

The market continues to be a top-notch game with the fastest fingers first for anyone interested in buying a PS5 or an Xbox Series X. Dealers snap up consoles instantly using an army of malware and robots to do so, something which has led the British Government’s Minister for Digital and Culture, Caroline Dinenage, to propose a bill that would make the act of scalping consoles illegal.

If you’re still trying to order a PS5, take a look at our hub to see if it’s in stock at major retailers nearby.

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