PlayStations are hot with consoles attracting rare shopping crowds
Sony Corp.’s newest video game console, alongside Microsoft Corp.’s updated Xbox, are arguably the hottest items this Black Friday as shoppers line up in person or swarm in. retailer websites hoping to catch one. GameStop Corp, one of the few retailers to make a brick-and-mortar outlet, saw shoppers lining up as early as Thursday – some even pitching tents – at locations in Norfolk, Va., To Salinas, Calif. .
There is always an item or a few items that people cannot find. The big news this year is the Sony PlayStation 5 and the Xbox from Microsoft, said Joseph Feldman, senior general manager and deputy director of research at Telsey Advisory Group, in an interview Friday morning on Bloomberg Surveillance, “These are the two new articles I keep hearing asked for, especially from Best Buy and GameStop, and you just can’t find them right now.”
A highly coveted product is exactly what retailers need this holiday season. After a brutal year of economic lockdowns and retail distress, stores are hoping pent-up demand can rejuvenate the industry even as new waves of Covid-19 sweep the country. Despite the health concerns, an item that sells high can attract buyers who may end up purchasing other gifts, while browsing the store or online.
Shares of GameStop climbed 13% in New York City to their highest intraday level since January 2019. Best Buy Co., which only sold the new consoles online, fell 0.9% to 10:28 a.m.
Online only
To keep the crowds down, Best Buy opted to publish only the latest consoles on its website, a move retail analyst Neil Saunders called a “failure” given the growing demand for the products.
Best Buy could have done something creative with an outdoor collection to handle the crowds, he said.
Still, stocks are overtaking the market this year, with Best Buy benefiting from trends in remote work and home schooling during the pandemic.
Best Buy is trading so well right now that they can afford to be picky, Saunders said. The company s shares have risen about 29% since the start of the year.
Google searches for gaming products rose again this week, according to a note from Baird Equity Research. Interest in “World of Warcraft” increased 96% after the launch of its latest expansion pack, while “FIFA Ultimate Team” increased 43% this week. The term gaming headset has also seen a steady increase in Internet searches, up 24% week over week.
With all the interest in gaming, the new consoles are sure to draw crowds wherever they are. But there is a reliable way to get your hands on it without standing in line: pay the resale. The consoles, which sell for between $400 and $500 each, sell for over $1,000 on eBay.
