The Evolution of Scalper Bots Part 7: The Next Generation Console Era
Introduction and Recap
Welcome back to our series on the evolution of scalper bots. So far, we have traced scalping from its early ticket resale roots to the rise of automated bots. We have explored the ongoing battle between bot developers and anti-bot defenses and examined how scalping evolved into a professionalized, multi-million-dollar industry. In our last post, we uncovered a hidden sub-market where traders aggressively bought, sold, and exchanged bot licenses just like the products they acquired.
Now, we enter a new chapter: the Next Generation Console era. Scalper bots regularly dominated mainstream headlines during this period, driven by a perfect storm of global events. A worldwide chip shortage, supply chain disruptions caused by the COVID-19 pandemic, and skyrocketing demand for high-value electronics created ideal conditions for scalpers. Meanwhile, legal action under the Better Online Ticket Sales Act (BOTS) surfaced for the first time, signaling growing scrutiny of scalper bots.
In this blog, we will break down how these elements converged, fueling one of the most lucrative and controversial periods for scalping. Let’s dive in.
The Perfect Storm: COVID-19, Chip Shortages, and the Scalping Boom
By late 2019, scalper bots had evolved into a sophisticated, profit-driven ecosystem. A series of global events soon pushed their operations to new heights, creating a ‘perfect storm’ for scalpers.
COVID-19 and the Shift to Gaming-Related Scalping
The outbreak of COVID-19 in December 2019 drastically changed the scalping landscape. Lockdowns halted concerts, sporting events, and other live entertainment. Many people turned to video gaming as an alternative while stuck indoors. Remote work also increased, driving higher demand for consumer technology. Scalper bot operators pivoted from ticket resales to gaming consoles and high-performance graphics cards.
The pandemic also increased unemployment, job uncertainty, and economic struggles. Government furlough schemes and stimulus checks provided temporary relief, but many sought alternative income sources. Scalping quickly became an attractive opportunity. Resellers capitalized on limited stock items to generate profit during uncertain times.
The Global Chip Shortage: A Supply Chain Nightmare
As demand for electronics spiked, supply chain disruptions made these products even scarcer. In early 2020, a global semiconductor shortage began, lasting for two years. Several key events contributed to this crisis:
- U.S.-China Trade War: The U.S. Department of Commerce sanctioned China’s largest chip manufacturer, SMIC, limiting its ability to supply American-affiliated companies. This created ripple effects across the industry.
- COVID-19 Factory Shutdowns: Many semiconductor manufacturers halted production for months due to lockdowns.
- Japan-Korea Trade War: Export restrictions on key raw materials disrupted major chipmakers like SK Hynix and Samsung.
- Natural Disasters: A historic drought in Taiwan, the world’s largest chip producer, restricted the ultra-pure water needed for semiconductor production. Meanwhile, Winter Storm Uri damaged factories in Texas, and three plant fires in Japan worsened supply constraints.
These disruptions created a severe chip bottleneck, significantly slowing GPU and gaming console production.
NVIDIA’s 30-Series GPU Launch: A Scalping Frenzy
In September 2020, NVIDIA launched its RTX 30-series GPUs. PC gamers and cryptocurrency miners highly anticipated these products. Cryptocurrency miners relied on high-end GPUs to mine Bitcoin and Ether, both surging in value. In November 2020, Bitcoin’s price surpassed its previous all-time high, reaching nearly $20,000. GPU production failed to meet demand, making the RTX 30 series instant scalper targets.
Scalper bots quickly acquired enormous quantities, driving resale prices through the roof. At peak demand, GPUs like the RTX 3080 resold for $2,399 – over 240% of the $699 Manufacturer’s Suggested Retail Price (MSRP). The profits were massive. One study estimated scalpers flipped over 50,000 GPUs through platforms like eBay and StockX, generating $61.5 million in sales and earning $15.2 million in profit.
Frustrated gamers fought back. Some deployed bots on eBay to place fake bids on scalped GPU listings, inflating prices before canceling their offers to disrupt sales. This “bot war” made headlines, forcing NVIDIA to intervene. The company manually reviewed purchases and canceled hundreds of bot orders before shipping. Meanwhile, retailers like Newegg introduced lottery-based purchasing systems, but these served only as temporary roadblocks.
The Next Generation Console Release: When Bots Took Over
The PlayStation 5 and Xbox Series X launched in November 2020, marking one of the biggest console releases in history. Millions of buyers attempted to secure a unit but demand far exceeded supply. Scalpers saw the perfect opportunity. Within 30 seconds of release, Walmart detected over 20 million bot attempts. Similar scenarios played out worldwide, with UK retailer Very canceling 1,000 fraudulent orders.
Scalpers wasted no time reselling consoles for as much as $5,000 on eBay. PlayStation 5 and Xbox Series X scalpers reportedly earned over $28 million in sales on eBay alone. Some groups, like CrepChefNotify, boasted profits exceeding £1 million from console sales. Even mainstream retailers took advantage, selling consoles for £200 above MSRP.
The scale of scalping triggered widespread backlash. Lawmakers in the UK called for legislation to ban automated purchasing. By December 2020, scalpers had resold over 60,000 next-gen consoles at inflated prices, frustrating consumers and retailers alike. Many scalpers used cashout services to offload stock quickly, ensuring guaranteed profit, though often at lower margins than selling on marketplaces like eBay.
The First BOTS Act Case and the Growing Legal Momentum
In 2021, the Federal Trade Commission (FTC) took its first action under the Better Online Ticket Sales (BOTS) Act of 2016. The FTC brought a case against three major ticket brokers: Cartisim Corp, Just in Time, and Concert Specials, Inc. These companies used scalper bots to buy over 150,000 tickets for popular events before reselling them at inflated prices. The FTC’s enforcement resulted in a $31 million judgment, though it collected only $3.7 million due to the defendants’ inability to pay.
These brokers deployed an array of tactics, including fake Ticketmaster accounts, thousands of proxy IP addresses, and bots like Automatick and Tixman. They cycled through multiple credit cards, fake addresses, and corporate accounts to evade detection. Concert Specials alone profited $13.7 million by acquiring over 80,000 tickets.
This case marked a step forward in combating automated ticket scalping but also highlighted a gap in legislation. The law only applied to ticket sales. As scalping expanded to high-demand products like next-gen consoles and GPUs, lawmakers saw the need for broader protections.
By November 2021, amid the explosion of scalping during the PS5 launch, lawmakers in the US reintroduced the Stop Grinch Bots Act. This bill proposed to expanded the BOTS Act to cover online retail products. It tasked the FTC with enforcing anti-bot measures across e-commerce, strengthening legal efforts against scalper bots.
Conclusion and Coming Up Next
The scalping boom of the early 2020s emerged from a perfect storm of pandemic-driven demand, major supply chain disruptions, and highly profitable resale opportunities. This surge forced retailers and lawmakers to act, leading to new enforcement cases and proposed legislation like the Stop Grinch Bots Act. However, bot operators continuously adapt.
As supply chains stabilized and console and GPU profitability declined, bots evolved. In our next blog, we will explore the fallout of the next-generation console era. As sneakers and electronics became less lucrative, bot users pivoted to freebie bots – tools that automated the acquisition of pricing errors, heavily discounted items, and even outright free products.
At the same time, ticket scalping resurged, bots-as-a-service expanded, and the battle between scalpers and anti-bot defenses intensified. Scalping never remains static—it always evolves.
