With all the news about PS5 and graphics cards being so hard to get due to low supply and scalpers. What stops Sony, Nvidia, etc. from jacking up their prices? PS5 has been out for over 6 months. In economics terms I would think it is now the long run, so prices shouldn’t be fixed. The companies might as well get in on the action and cut out the scalpers. What gives?
In: Economics
For the existing units, there’s a substantial risk of generating ill will among the customer base if a company raises prices after announcing the retail price. Enough to dissuade them from doing so even though it may lead to increased profits over the short term (even the medium term). But rest assured these companies are revising their pricing strategies for the next generation of consoles. Don’t be surprised if the next generation of consoles sell for 50% or more comparesd to current consoles.
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