It’s been awhile since I’ve been so passionate about a gamer-related issue that I am compelled to write at length about it, and as always, I will be as wordy as possible, and surely rattle a few cages. As you might guess from the image to the right, I’m talking about the holiday thievery known as “flipping”; it’s when someone buys a hot item with the only intention of reselling it for a profit, a miniature economy which has evolved from the age-old ticket scalpers with the help of the internet and sites like eBay or Craigslist. However, the holiday gift-giving season adds its own finger-licking secret herbs and spices to the equation; the variable upon which the debate spins: ethics, and is the practice of flipping appropriate this time of year?
Earlier this month, RawmeatCowboy posted a couple, stories on GoNintendo which coincided with a discussion on their messageboards about this very habit, and just how ethical people consider the practice to be. Rawmeat tends to keep his opinions from interfering with news stories, which is why editorials like this or the “End of Day” posts make great places to speak one’s mind on all these happenings in our world.
Let me start by saying that I don’t honestly expect to change anyone’s mind or the world here, but rather foster some healthy discussion in either the comments or the above thread to really help explore the angles and share viewpoints. It’s a polarising topic to be sure–either you’re for or against–and little area in between.
Having in the past experienced everything from launch day waiting lines to working a customer service desk at a national toy retailer for several holiday seasons, I have seen and heard enough to understand both sides of the issue. Back when Pokémon first emerged in America, to the infamous Tickle Me Elmo, N64, and furbie, I routinely was put in the crossfire of “scalper” and “gifter”, as I will call them. In addition, my experience working in advertising–especially for retail giants–grants another unique perspective to the mix.
So what about it? To put it bluntly, all things considered, I find the practise somewhere between tacky and despicable. Normally, I don’t mind flipping hot items like touch-screen cell phones or epileptic plush toys, because paying exorbitant prices is the way of life for early adopters. But what about something like the Wii that more than a year after its launch is still impossible to find? We’re far past the early-adopter stage, leaving the majority of seekers to be regular gamers, families, etc…including the expanded market Nintendo has worked to create. Shouldn’t the scalping of hot new items end when the item isn’t new anymore be curtailed, making room for the masses to consume?
It happens that the past two years have seen console releases during the holiday rush, and the manufacturers have to take some credit for the shortages that introducing a hot new product during the busiest shopping season is bound to create. But that credit ends where the ‘natural supply/demand’ ends. This new economy whereby a small population of Grinches is able to artificially offset the delicate balance of supply and demand by taking as much of the limited supply without genuinely wanting or needing it, makes for a very tumultuous ride for the rest of the good-natured consumers. By removing supply from stores, they also artificially increase demand, and thus prices, because so much ‘unconsumed’ product will be in the hands of the scalpers; the scarce remains of product for sale at retail prices is already being consumed by those looking to keep them.
Unfortunately for those who may be at the mercy of these cyber-mercenaries, they only exist because there are people who can or will pay them for their services, and the number of people who are interested is extensive. Their patrons can be a wide range of people–lazy sloughs who don’t want to bother with the hassle and crowds, folks with too much disposable income that will shell out cash no matter what, desperate parents looking to give something special to their children, the list goes on. The laws of supply/demand extend to more than just product. If there were no demand for what scalpers sell, they would have to find something else to do, like snatching purses on the subway or pulling that proverbial lollipop from the clutches of a baby in some unattended stroller. Just like ridiculously expensive cars, jewelry, or trips to space…there is a market for nearly everything, and in the case of scalpers, they can create their own demand simply by the nature of their business.
But what about the holidays, aren’t they supposed to be a season of giving and goodwill? Yes, but the biggest gift-giving occasion, Christmas, also used to be a secular holiday, only to be perversely transformed into a really ugly beacon upon which a good part of our beloved capitalist economy shines, so it is safe to say that the secular values of goodwill and giving have also been transformed into greed and, well greed. Some companies actually thrive because of the revenue generated during the last month or two of every year, even losing money the rest of the year. An odd perspective from an advertising professional to be sure, but I can humour the downward spiral that the holidays have become and just deal with it. So what about the illusion of goodwill that the holidays imply? Shouldn’t the opportunistic folks looking to make a few bucks off what could have been Timmy’s happiness in getting a gift like the Wii have a few more scruples or creativity to make their allowances this time of year? The rules of capitalism by which they operate are to take as much as they can as long as they can, an exact opposite to giving.
Back to the topic at hand though, another reason I disagree with profiteering from gift scalpers is simple: they are not businesses. In fact I would bet few if any have proper licensure to operate trade in such a way, and even fewer which claim their scalping “income” on their yearly taxes. Products are meant to be bought, and businesses exist for that reason. Outlets such as eBay and Craigslist are tools which are (or at least originally) intended to connect buyers to things NOT sold in traditional stores, such as import, antique, and especially USED items. Many retail stores have policies against selling to “dealers”; they are selling things to people who want to buy them, not to help other businesses and ventures; a clear conflict of capitalistic interest. Retail stores undergo complex negotiations to establish contracts with vendors to provide a manufacturer’s products to consumers at specific prices. I guess the bottom line here is that retail stores are meant for selling to end consumers, not as factory warehouses for illicit dealings. If it were a legitimate practice, this hiding from things like tax laws and trade-contracts wouldn’t be necessary.
Does flipping product hurt the industry? Yes and no. Yes because if someone is paying 2-300 more for a Wii system for example, the same consumer will have exactly that much less to put toward games, accessories and downloadable content. No because to some degree, those willing and able to drop all sorts of coin on an underground system is likely not to be spending their last and will still have bank for those games and accessories. But it still boils down to simple principles of mathematics: subtract 2-300$ from anyone and they will have that much less to spend on other things, regardless of how much remains in their wallet. In an industry where *ahem* some consoles have no profit margin and rely extensively on revenue from licensing games and accessories, this can definitely affect its health.
So all of that is as much of my side of the story as my fingers have strength to present. In the end, it’s up to each in their own conscience to approach flipping hot products as they will, and that may or may not change for some. But I believe the world is what each of us make it to be, and ask you only to consider that the world is full of other people, and we each have the power to do something to improve it–or at least the gift-giving season for those others around us, friends and strangers alike. Let’s leave the reselling of product continue to be the pursuit of businesses, especially this time of year, and get on with more productive activities, like 8-hour Super Mario Galaxy marathons and arguing on messageboards. 🙂