Valve's Steam Deck announcement took the gaming world by storm last week, as the announcement of a Valve-designed portable gaming console packing an AMD Zen 2 CPU with RDNA2 cores set collective imaginations on fire. However, as is the case for any recent gaming hardware launches, expect the Steam Deck to be hard to come by - demand for a mainstream portable, Switch-like console that promises to enable AAA-gaming on the go is apparently sky-high, despite the fact that some portable devices exploring the same concept have been available for a while now, such as the AYA Neo (which even packs two extra Zen 2 cores) and the Intel-based One XPlayer.

As is the case for any recent hardware launch that garners enough mainstream attention (looking at you, current-gen GPUs and consoles), a lopsided demand-supply ratio is a playground for unscrupulous types looking to make a profit at the expense of other people's impatience. And it sure is happening already - eBay listings for "pre-order confirmed" Steam Deck variants are already being set at €4,324 (roughly $4,989) - though we'd say they're tentatively set at that ludicrous pricing. It seems that the current median asking price sits around the $900 mark for the 512 GB SSD-equipped variant. Tentative or not, this just goes to show that the new normal is for launched products to be actively gauged for scalping practices - more now than ever before.

Members form the UK Parliament are apparently preparing to introduce a bill that would regulate the scalping phenomenon that's being witnessed worldwide. According to Scottish politician Douglas Chapman, in an interview to IGN, "The issue of scalping first came up with constituents contacting me to explain their frustration about being unable to get hold of certain games consoles or computer components pre-Christmas." He then expanded on that by adding that "On investigation, we uncovered more details of the unscrupulous practice of 'scalping' by automated bots to bulk buy these goods and sell them on at inflated prices." Oh, and this bill is unlikely to pass, by the way.

Scalping, however, isn't done only in the UK; it's a pervasive international issue that crosses borders. And scalping, as it is known, is nothing but a form of speculation, which some might say is part of the backbone that keeps the world's capitalist blood pumping through the economy - some might even argue that scalping occurs directly due to mechanisms of supply and demand, and thus, isn't an unlawful activity in and of itself. Companies, corporations, and all other legal entities, however, have to adhere to strict anti-monopoly/anti-cartelization laws, which deal with the same base issue, although in another facet of it. The problem is that it appears that in some countries, speculation is regulated at the enterprise level, but not at the citizen level. And herein lies the crux of it.

The major GPU releases in 2020 are all plagued by the same problem: good product, not enough stock. This has led to a perverse situation on the market: you can't just walk into your favorite store and purchase the product you want. This is a consequence of NVIDIA and AMD going to market with tiny volumes, and extremely optimistic MSRPs which opened up the market to the phenomenon of scalping. Scalpers are individuals, or groups, who buy up whatever little volume is available, often using sophisticated online shopping bots, and resell them at exorbitant premiums on marketplaces like eBay, for profit.

This system only works because there is zero retail stock available anywhere on the planet, and whatever volume comes in, is so low that it evaporates, often before hitting retailer shelves. The only way scalping can be defeated is for manufacturers to flood the market with large volumes of product that the scalpers cannot scale their purchases up to, and possibly for crypto-currency mining to become not worth it on the latest generations of graphics cards. Until these happen, marked-up pricing is an inescapable reality for consumers.

Taiwan Semiconductor Manufacturing Company (TSMC), one of the largest semiconductor manufacturers in the world, is reportedly ending its volume discounts. The company is the maker of the currently smallest manufacturing nodes, like 7 nm and 5 nm. For its biggest customers, TSMC used to offer a discount - when you purchase 10s or 100s of thousands of 300 mm (12-inch) wafers per month, the company will give you a deal of a 3% price decrease per wafer, meaning that the customer is taking a higher margin off a product it sells. Many of the customers, like Apple, NVIDIA, and AMD, were a part of this deal.

Today, thanks to a report from the Taiwanese Central News Agency, TSMC is terminating this type of discount. Now, every customer will pay full price for the wafer, without any exceptions. For now, it is unclear what drove that decision at TSMC's headquarters, but the only thing that we could think is that the demand is too high to keep up with the discounts and the margins are possibly lower. What this means for consumers is a possible price increase in products that are manufactured at TSMC's facilities. The consumer market is already at a drought of new PC components like CPUs and GPUs due to high demand and scalping. This could contribute a bit to the issue, however, we do not expect it to be of any major significance.

Michael Driscoll, an Oracle data engineer, has written a data scraper that runs through eBay listings for the latest hardware, comparing products with their sale price. The objective was to see just how pervasive scalping actually is, and to get a (flawed and incomplete, but still extremely interesting) outlook at the scalping ecosystem and their gains with the current hardware and console shortages. Driscoll analyzed sales for the Xbox Series X|S, the PS5 (discless and disc-based) as well as NVIDIA's RTX 30-series, AMD's RX 6000 series, and Zen 3 processors. There are some assumptions on the gathering and analysis of this data, but that is part of the beast.

The results are potentially desperation-inducing. AMD's Zen 3 CPUs have sold for sometimes 240% of their MSRP (looking at the biggest offender, the Ryzen 9 5950X. The RX 6800 XT graphics card has been selling for within an inch of 200% of its MSRP as well, with a median price over the past week set at $1247 (compare that to the $649 MSRP). The RTX 3080 has been selling at 180% of its MSRP for the past week, but it has been moved at 220% of its MSRP before. The case repeats with several degrees of severity for the Xbox family and PS5 consoles.

Scalping bots and overpriced re-sales are the new reality of PC hardware launches. The same swarm that wiped out launch inventories of NVIDIA GeForce RTX 30-series graphics cards, now hit AMD Ryzen 5000 series "Zen 3" processor inventories across the US, reports HotHardware. Bots scalped out Ryzen 5000 series inventories using sophisticated scalping services such as Bounce Alerts, and scalpers quickly put their freshly acquired inventory to re-sale on eBay at exorbitant prices, with the likes of an $800 Ryzen 9 5950X being re-sold at over 50% premiums.

ASUS has warned that a similar fate awaits the first inventories of the Radeon RX 6800 XT and RX 6800 graphics cards, given that AMD has marketed these next-gen GPUs to offer performance rivaling those of the GeForce RTX 3080 and RTX 2080 Ti (in effect RTX 3070), respectively. In the weeks leading up to the Ryzen 5000 market release, AMD issued anti-scalping guidelines to its retail partners, to ensure fair sales of hardware to genuine buyers, and to prevent scalping bots. We now know these guidelines were futile.

Recently, it has been brought to light that a particular seller on Ebay was selling price-hiked MSI RTX 30-series graphics cards - such as the RTX 3080 Gaming X Trio - well over MSRP ($1,359 for an RTX 3080, compared to NVIDIA's $699 and MSI's $799). A more attentive look at the seller, identified as Starlit Partner, reveals that they carried only MSI-manufactured SKUs for NVIDIA's RTX 30-series, and was selling them, in most cases, as sealed and brand new. Now, scalping of NVIDIA's latest graphics card series has been thoroughly covered here on TechPowerUp; however, suspicions of ties between Starlit Partner and MSI itself, and the suggestion that this was a coordinated move in order to sell RTX 30-series inventory at marked-up pricing, deserves a longer appraisal.

As soon as the suspicion was posted in the Internet, some users donned their detective cloaks and went digging for more information, and confirmed the ties to MSI. However, MSI has already issued a statement on the issue, clarifying the scenario we were faced with. Indeed, MSI has ties to Starlit Partner, as they themselves acknowledge - the later is an individual sales subsidiary working under MSI. However, MSI further explains in the statement that Starlit Partner is tasked with the sale of refurbished items and excess inventory - and that they should never have had access to NVIDIA's RTX-30 series graphics cards in the first place. MSI launched an investigation that confirmed an error in inventory allocation allowed Starlit Partner to access inventory they shouldn't have had access to (without clarifying the error).