(Topic ID: 170740)

Is this the bubble?

By Russell

7 years ago


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#9 7 years ago

Why would a bubble effect you wanting to have a collection? that seems like a straw man argument.

Can't you just keep the pins you like? also if there is a bubble can't you just sell/trade the same way you do now with other pins also devaluated it's a wash.

The only thing this effects is new pins (high price) while pins in circulation low price.

Just don't buy new pins what the problem?

This thread reminds me of people who need safe zones or who can't hear bad words because it'll hurt their feelings IMO.

#53 7 years ago
Quoted from PanaPinResto:

Sweet, it's the 10th semi-annual bubble burst thread

Where's Houseofpins when you need him?

#62 7 years ago

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#75 7 years ago

IMHO while I was selling XMLE I had a hard time, not just getting the price I wanted, but I was not getting any interest at all.

I think it may have been a combo of things with that title but the timing also was not optional

- people can get a Met or TWD for similar money or less
- people may have already owned that title (the target buyers might already have it or had it in the past)
- people may not like that title (although it's a good pin IMO, it's kind of polarizing)
- people may have just got GB, TH or were gearing up for the new titles
- the market seems to be softer throughout, I know people trying to sell tspp, RBION, WoZ for a good price but no interest

I think there *is* a softening in the market but not a crash, when prices go down, people tend to expect more reductions when prices go up people expect it to continue. IM was hot 2 years ago before the VE and people couldn't get one, used IM were selling for bank because people thought it was on the way up and so they said pay now before its higher tomorrow, the opposite happens too when one XM sells for less they think the more they wait the lower it'll be tomorrow.

#78 7 years ago
Quoted from Richthofen:

Bubbles usually require a catalyst to burst. I know that because pinball prices stayed the same or increased during the last recession that people think its a recession-proof hobby, but I would disagree.
The hobby has expanded with many many new collectors, which is great! That expansion coincided with the last recession, which kept the prices afloat. I think the timing of the new collectors entering the hobby was mostly coincidence. But not all collectors have the same financial profile. There's people with large net worths who get every LE. And then there's people buying games on the margins with bonus money or a small stock market win or something.
I believe we're overdue for another business cycle contraction/recession. When that happen the wealthiest will still buy games. But the collectors who need to raise money due to a job loss or business slowdown will not be buying and probably be selling. The decreased demand combined with the expanded supply of new games and new manufacturers will lead to lower prices. Because the total collector count is still well above what it would be 10 or 15 years ago prices won't go back to the 'good old days' that I missed out on. But I think we'll see a correction in prices. If I had to put a value on it I would say 30%. That's what the housing market fell. I conflate the two because pinball and houses are both illiquid and require time and effort to sell, unlike stocks.
Other factors
I also wonder whether pinball as a hobby could be a trend or 'fad' for some. Will the new collectors who entered the hobby 5 years ago or less be collectors for life?
Pinball prices are regional in some sense since its reasonably a pain to ship a game. and most games do not change hands on eBay so prices paid are opaque. Will a price decline hit some areas first? Since I think the next recession will come out of California and the second tech bubble, I would imagine it might be harder to move games there and could be the start of the price decrease. (Also helps that this is where the games are most expensive in the US anyways).

Excellent post.

I'm an avid collector as you guys probably know. I'm not a Jonny come lately but my collection (5 pins) was stagnant and not being played a lot. I had TOTAN TZ IJ CFTBL and PotC in my collection in 2012. But I was not in to the hobby as much any more.

At that time I was thinking of exiting the hobby or scaling back to just 1-2 pins.

BUT at this time when I got *more* interested there had been an upswing in the hobby that past few years, IM and Tron had been out just shortly before. XM (was just coming out and had a lot of buzz) ACDC had just come out and WoZ already had its following although we didn't know how long it was going to be delayed.

Followed by good pins like Met, TWD, ST, MM, TH, and a dozen other pins in the last 4 years.

My collection added in this order

XMLE
Tron
ACDC premium
SM
STLE
IMVE
TSPP
MET
TWD
LOTR

So I was partly responsible for the surge but at the same time cost, space, and time (ability to play 9+ pins) is working against me. I'll still get a few more pins maybe one a year but not like 3 every year.

Not saying I'm less into the hobby but my limit is getting closer so I'm less likely to buy anything new. 4 years ago I was prime and ready for a surge. Now I'm more in a slow burn as far as new pins.

Could be other collectors are in my predicament too.

#80 7 years ago
Quoted from dung:

Agree, but for many there is a limit to how many machines they can own. Space/money requirements being one. Unless you have a constant influx of new collectors eventually many will be at capacity and simply maintaining what they have.

Yes unless something odd happens like say China (Vast middle class and upper class too) if they somehow got into the hobby and wanted to import pins from US. That's a big if.

But I'm just saying the market for 30-50 something guys that are into pinball doesn't seem to be growing that much. Sure some new guys especially if JJP kind of kicked the same old same old pinball into a different level. But even that really might have a limited effect unless an untapped market like China comes out.

I'm sure there will be the hipsters like Kenada come in, but he had a grand total of one pin contrary to all his wind bag noise. Guys like Houseofpins burn brite for a minute but also burn out just as quickly.

#142 7 years ago
Quoted from wayout440:

The only two industries to maintain growth through a recession are health care and alcohol sales.

Cigarettes too (I'd bet)

#176 7 years ago
Quoted from 27dnast:

I'm not sure how any of the pinball past can be directly applied to pinball in 2014 through 2016. This is a very different time... the machines are quickly fading as money earning amusement machines and rapidly advancing as home collectables. It's not like we've seen pinball go through waves were home collectors played a dominant role in the very existence of pinball companies. It's simply never happened... and that's why this is becoming a bubble. It's a collectors market driven by the amount of money individuals are willing to invest....at the moment it's paired with the fad-driven barcades and retro-cades...but those aren't going to remain viable long term (IMO).
I think you're right... it's the collectable nature that is going to eventually cause this current situation to pop. Prices will eventually fall. How much? Who knows... I think the health of the economy is the driving force behind when this all reverses and the longevity/strength of collector interest will dictate its eventual return.
Anyone dumping $7K into a game in this day in age is essentially kicking that money to the curb. They might get it back. They might get more back...or they might get significantly less back. Total crap shoot. How this all ends for pinball as its own unique entity (and a niche one at that) is a total unknown.

You are correct as with my example I could have some money in the bank but after buying 12 pins in 4 years (selling 6) the point is the room/desire gets lessened as the basement is filled with nice pins. I'm not out of the hobby but I'm slowing down my purchases and I think this 2012-16 period has been similar with other collectors. Where there was an upswing in interest the pin makers stepped up but as more makers are now involved and less need/want by the collectors than there was 4 years ago.

It's a supply-demand mismatch.

#177 7 years ago
Quoted from Russell:

Does anyone have a nice animated wallet-closing .gif? Having seen BM66 and Dialed In reveals, it seems it's going to come in handy.

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#192 7 years ago
Quoted from 27dnast:

You have quotes around "artificial manufacturer price inflation"... is that an actual term? Or are you making this up? Can you send a reference on that? I'm curious to read about it

I'd be interested in your thoughts regarding home theatre spending.

Does HT go through surges and pullbacks or is it fairly constant? Once a person has a nice set up is that it or do they keep acquiring more stuff like pinheads?

HT is also an expensive hobby with *large* outlays of money.

Is there an expectation of the equipment lasting decades (I suppose speakers) or is replacement every so many years the norm? And what happens to the pre-owned equipment does it devaluate or are older (quality) components still worth a pretty penny?

#198 7 years ago

A lot depends on

-people's space / room (wife's allowance) going forward
-new people entering the hobby vs people leaving

As we've seen over these past 5 years new pinball choices are getting better. However a lot of people now have got Woz, Tron, Met (etc...) there have been probably 5-10 big games in the past 5 years and another 10-15 lesser pins.

I expect this to continue in the next 5 years.

Will people get rid of past winners (keepers) to make room for the new ones?

Myself I just traded a pin I was on the fence about to get a better/different pin. While I'm happy with the new pin I miss the one I sold.

I know people who switch all the time a keeper for them means 2 years. But others like me hang on longer and might balk at trading a keeper even to get another great pin.

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