PS5, Xbox Series X, Nvidia and AMD Graphics Cards Still Selling for Big Premiums

Thanks to both enormous consumer demand and supply chain constraints, high-end gaming hardware remains out of stock at major retailers.
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Christmas has come and gone, but the latest game consoles and high-end gaming GPUs are still out of stock at retailers and selling for large premiums on eBay.

While aftermarket prices for Sony’s  (SNE) - Get Report PlayStation 5 and Microsoft’s  (MSFT) - Get Report Xbox Series X have dropped from the highs they reached after the consoles went on sale in November, they’re still comfortably above list prices.

The standard PS5, which has a $499 MSRP, still sells for more than $800 on eBay  (EBAY) - Get Report, for example. And the PS5 Digital Edition, which lacks an optical drive and has a $399 MSRP, tends to go for around $700.

The Xbox Series X is selling for around $700 on eBay. That represents a decent premium to the console’s $499 MSRP, albeit less of one than what’s commanded by the PS5, which from all indications has seen (with the help of an arguably superior slate of exclusive launch titles) stronger interest from gamers.

Meanwhile, the Xbox Series S, which lacks an optical drive and has a less powerful GPU than the Series X, is typically selling for $350 to $400. That represents a moderate premium to the Series S’ $299 MSRP.

Nvidia’s  (NVDA) - Get Report RTX 30 Series gaming GPUs also remain hot items following their September and October launches. The top-of-the-line GeForce RTX 3090 is often changing hands for around $2,000, well above its $1,499 MSRP, as you can see below.

Recent eBay sales of graphics cards powered by Nvidia's RTX 3090 GPU. Source: eBay.

Recent eBay sales of graphics cards powered by Nvidia's RTX 3090 GPU. Source: eBay.

The RTX 3080, which has a $699 MSRP, is typically selling for around $1,200 to $1,300. And though Nvidia delayed its launch by two weeks in October in an attempt to prevent major shortages, the RTX 3070 is still selling today for $750 to $800, well above its $499 MSRP.

The story is similar for AMD’s  (AMD) - Get Report RX 6000 gaming GPU line, which launched in November and early December. The flagship Radeon RX 6900 XT typically sells for $350 to $400 above its $999 MSRP; the RX 6800 XT sells for $400 to $500 above its $649 MSRP; and the standard RX 6800 sells for $200 to $300 above its $579 MSRP.

Though such shortages and aftermarket premiums for high-end gaming hardware are unlikely to last for the whole of 2021, it does look as if they’ll remain in place during the early part of the year, as chip and hardware suppliers deal with both supply chain constraints and enormous demand from consumers spending more time at home than ever due to COVID.

Sony and Microsoft have both cautioned that they expect shortages for their latest consoles to persist into early 2021. In November, Xbox CFO Tim Stuart forecast that Xbox Series X and S shortages would last until Microsoft’s June 2021 quarter.

Likewise, Nvidia CEO Jensen Huang forecast in October that shortages of RTX 3080/3090 graphics cards would last until 2021. And in late November, AMD reportedly forecast that it would take 4-to-8 weeks for RX 6800 series graphics card prices to fall to their MSRPs.

Of course, given what the supply-demand balance currently looks like for both AMD and Nvidia’s most powerful gaming GPUs, gamers in the market for an RX 6800 series card probably shouldn’t hold their breath waiting for a quick return to MSRPs.

Microsoft, Nvidia and AMD are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now.