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Unconventional Investment Strategies Vol.1 - Next Generation Video Game Consoles

Every few years an event happens that allows the business boy to reap profits like a day trading coke dealer. This event is the release of the next-generation video game consoles. The hype around console releases can never be understated. And while Microsoft, Sony, and Nintendo are all willing to sell these systems at a (substantial) net loss, there is no reason why you shouldn’t even out the curve for them.

Before the jump, it may be prudent to heed a tale of unconventional investing gone awry: When I was a just a spry young chap I had a dream that by this time in my life, my comic book collection would have appreciated in value to the point that I would be able to retire. I mean I had Batman Spawn Team-Up, Wizard 1/2 issues, and the incomparable Brigade #1 Gold Cover (An Aside, The Brigade #1 Gold Cover saw a drop in value of about 87% in the spring of ‘96) But the best laid plans…

Anyways, now that no one cares about the “value” of comics, one has to look to other means to easy street. And while the “market” may be ripe for the picking there are other outlets available, like blackjack, or if you don’t like counting cards the Playstation3….

First off is input costs. for a 20GB PS3 we are looking at approximately $609.39 CDN entry, plus 3 hours of waiting in line on a pre-order day. We’ll say a total of $650 to make things nice and even. Now say we get our system on launch day and make an profit of around $263, reasonable. This profit margin can be raised by going outside of eBay/Paypal route, by as much as 50%, after counting Insertion Fees/Ebay Sales Commission/Paypal Commission ( NOTE TO SELF: BUY EBAY STOCK). But of course the likelihood of you getting scammed, as well as size of hassle increases. So with these figures we are roughly looking at a return of 40.46% over a two month period. WOW! I think the Saskatchewan Pension Plan Portfolio Managers should be lining up at Walmart and EB Games next time around.

PS3_Chart
Now take a minute to review that ugly excel chart….
Excellent, now if we were to have instead go the road more often traveled and invested in the S&P500 we would have only seen a return of 4.5% over the same period of time. Let us take a look at the chart.
S&P500 Chart
Google Finance is nice, and it keeps getting better. But that return, that isn’t such a big deal! I mean it may beat out the Dow and Nasdaq over the same period. But how are you going to get pumped about 4.5% when you know the tech sector down at Future Shop is performing ten times better?
Anyways here is some tips for selling your Playstation4 consoles on eBay:
-Have a PowerSeller Account, this is a new rule they brought in this time around, and you can bet it will be there next time.
-Pre-Order your system if at all possible, even if it doesn’t come through you will still have it before most.
-Sell the system ASAP. The hype is where the dollars are made. If you can sell your pre-order in such a way that the sale will end morning of release when the frenzy is climaxing you stand to make THE MOSTEST.

This entry was posted on Friday, December 15th, 2006 at 1:29 am by Terrell, and is filed under Big Time Fun, Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Unconventional Investment Strategies Vol.1 - Next Generation Video Game Consoles”

  1. broham Says:
    December 16th, 2006 at 1:52 pm

    That was MY Brigade #1 gold cover!!! and you wanted it so bad you could’ve tasted it……

  2. Terrell Says:
    December 17th, 2006 at 4:11 pm

    IF! you remember rightly, after you got the Brigade #1 Gold Cover, I also received a copy in a “10$ surprise bag” the following American Comics Mail Order.

  3. broham Says:
    December 18th, 2006 at 2:30 pm

    that was a NONNNNNNN gold cover!

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