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>What happened to the law of Supply and Demand?

Working in absolute perfection.

The question here really isn't about Supply and Demand, but product pricing, sales and marketing strategy. Where each on itself is a complete topic of its own.

What you are suggesting here, is that for example, Sony announced their First Batch of PS5 will go for retail price of $800, and two months later it will be back to normal $500.

Problem 1. There will still be scalpers, the market for first to own PS5 is a lot higher than $800. I could resell a PS5 right now for $1000 USD with queue in my front door.

Problem 2. Getting a $800 RSP may create lots of bad press and un-intended consequence for marketing.

Problem 3, Generally speaking having constantly sold out PS5 is a good marketing problem to have. Lots of opportunities to talk about the product. Hunger marketing is real.

Problem 4, An RSP of $800 or higher RSP will create opportunities for your competitor.

Apple has been getting very good at handling these sort of thing and the only way to stamp out most of the scalpers ( most, not all ) is to absolutely flood the market at first launch. Of course that partly only works because they are Apple, the best supply chain and logistic company in the world.




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