Kotaku has an article that describes the decline of the grey market for Playstation 3 game consoles. Once considered a smash hit product with insatiable customers, reality has set in. The demand is not there and prices have fallen as a result. There is an entire business segment that makes its living from buying game consoles at retail in anticipation of money-no-object buyers who crave the latest gadget. But not this time: it became obvious very quickly that the PS3 is not going to live up to its hype and the potential buyers vanished.

I predict that the next big money maker in this segment is going to be not the consoles themselves, but futures and option contracts for the consoles. Then things can go the way of tulip bulbs in the 17th century.

Tags: Pigs With Lipstick, Consoles