NO MORE PS2 PRE-ORDERS
May 23, 2000

Babbage's, Etc. and Electronics Boutique (two of the largest video game retailers in the US) have stopped Playstation 2 pre-orders.

If you haven't already ordered your PS2, your time is running out quickly if you want it on launch day (you'll need to find a different retailer than Babbage's, Software Etc., and EB, though). Morever, even if you have already pre-ordered your system, you may still be unable to pick up your system when October 26th hits.

The official word on the situation is that pre-order limits have been greatly exceeded (no surprise considering the pre-order programs started in January), but there are two issues that definitely go beyond consumer expectation of the system, both of which we saw with the N64 launch.

First, it's highly likely Sony is trying to create (more) hype for its upcoming system. One easy way to do that in the past has proven to be telling consumers there are "limited quantities." This tactic made the N64 almost as anticipated as Tickle Me Elmo.

Second, there is a significant (albeit illegal) black market for products such as this. EBWorld has placed a limit of 1 system per person per day on PS2 pre-orders. Who'd want to get more than 1 PS2 (let alone more than 1 per day)? Speculators who are hoping to sell them to someone else for $500 or $1000 (or more) after those people find out they can't buy them in stores. It's a simple case of supply and demand: a shortage of systems means a higher price will be paid. When the N64 came out, it was quite commonplace to see newspaper ads pricing it at more than 5 times its initial cost.

Ultimately, PS2 is going to be a hot item at the end of this year, but getting your hands on one (or getting your hands on some games if you do) is going to be a real chore... and will remain as such until some time in 2001 at least.

Partial Sources: All PSX 2, Video Game Heaven.com