Exposing FRAUD And DECEPTION In The Retro Video Game Market
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- Опубліковано 22 сер 2021
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In today's video we take a look at the current retro video game bubble. We learn who caused it to happen, who is profiting, and what needs to be done to fix it.
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Music:
GTA V - Pause music
Galaxy map - Mass Effect
Steady - Veritas
Deep Sea - Perfect Dark
Carrington Institute - Perfect Dark
Maian Tears - Perfect Dark
Resurrections - Celeste
Home Bay - Ecco
Level 0 - Tetris Cd-i - Ігри
These people have a lot of power and money, so let's hope they don't attack me for this. A lot of people talk about money laundering but I didn't go into it because it's all pure speculation. Money laundering doesn't CAUSE bubbles. People can take advantage of a bubble that exists, but it's not the root cause. I just focused on what I could prove.
Yeah. They Just want money.
Have you been following the Wargaming, World of Warships saga Karl? reg: The mass walkout of the community contributors, gambling loot boxes, USS Missouri etc?
Hoping for your safety, legend
HOPE UR SAFE LOVE FROM ISRAEL
I just know they're gonna go all Billy Mitchell on you. I'd be ready for a lawsuit.
Gamers don't even want to spend $70 on a game, of course they aren't spending 1.5 mil smh
Hi mossbag. I 100% agree with you. I remember the days when 3ds games were 30 bucks and that was awesome. I can’t believe what people are doing just to get more money in their pockets. Also keep up the great work mossbag. Can’t wait for silksong lore videos when the game comes out.
@@R0ll0run 3DS games? they still are 30 bucks
why are you here
@@jordanwise5 I mean when almost all games were 30 bucks, 3ds games as an example
@@R0ll0run found the shill. "hello, popular UA-camr who is popular. Can't wait for your series of videos covering specific topic." 🤔
"Babe, what are you watching?"
"Um... a true crime documentary?"
i legit replied "a documentary about financial speculation"
100%
It back fired, she wants to watch now
I remember when the worlds most expensive video game was Gold Nintendo World Championship with a staggering price of $18,000. And that's a game with only *26* Cartridges ever made. So how does a game with over *11 MILLION* copies sell for $1,500,000?
google "wash trading"
@@aristideau5072basically just buying and selling repeatedly to fake market activity if I’m correct?
@@aristideau5072 holy hell
Karl explains how in the video mate
Because it's money laundering that's why it wasn't some joe smo's game it was sold by the auction house and the grading company. That's why it's obviously a crime.
I'm sorry the accent when he says "pawn stars" catches me off guard everytime
I had this in the background and I thought they were just VERY desperate
13:30
I thought he was talking about porn for some reason
Pornstars
I'm not sure if it's Karl's intention, but he is seriously becoming one of the best investigative journalists in video games
It's pretty poetic that this video describes perfectly what corporate "journalism" has become, a PR platform for shady practice because they trust that no actual research would be done. In a trend larger than video games, video essays are effectively real journalism, and it's fascinating.
Perhaps not just in video games, just in general. I have limited interest in games and virtually no interest in speed runs but I've found his presentations, especially the investigations of fraudulent activity to be very well done.
The dance
@@gizmogremlin1872 me too, I'm too lazy for speedruns, but I've watched most of his videos because he took it seriously.
Investigative journalist period.
Karl's accent is making Pawn Stars sound much more exciting than it really is
It does make him sound more professional though.
I could not hear pawn stars at all
@@stevedoidoultimate4815 holy shit dude, 7/10 comment sections i go have some connection to brazil lol
Reminds me of the kind of people I'd watch at night
@@ryandyer3466 no it makes it sound like something else lol, like a different word that's very similar...
My niece loves collecting N64 games. This bubble has made it impossible for her; she has managed to add to her collection, but only through near-religious devotion to going to garage sales and digging through thrift stores. I hope this bubble bursts soon. Thank you for explaining how this problem got this bad to start with.
Not sure where your niece lives, or you, but I'll gladly offer up my collection, if it worked out, for rightful pricing.
The thrill of going to Rumage and yardsales. All the best in her endeavors.
Same
@@SuppleBadger $10,000 minimum, right? ;)
Garage sale and thrift store plundering is the best part, if you ask me. Just owning the items is one thing, but it's the stories you create hunting for them that really make collecting special.
I cannot imagine having even a fraction of the money these scammers have and still wanting more.
I laughed when I heard "yea if we lose 15k on you, whatever, no big deal" I was like ohhhh these people are RICH rich. For 15k to be an acceptable loss on a hail mary is insane.
Can’t fix stupid with money
@@keithbellair9508Oh, nice, casual anti-Semitism
@@EmilinkoHoward every character in the story was one of them… but i could have told you that before i even watched it.. every single time.
@@EmilinkoHowardoy vey...
In a gold rush, the people who get rich are the ones selling the shovels
What a true statement 👏
51:22 spotted :^) , real quick shot but its there
Toilet paper shares went down now
That is hilarious because they're literally grading a TON of *shovelware*
Brb. About to monopolize the controller market 👌
Karl is a man on a mission to expose all video game nonsense, and I absolutely love it
like Jim Sterling but for non industry bullshit
@@Sceleri and without diabetes
Same but I love it more than you
I hope hvvh hand hit hyou h h h h hi h h how how how h hh ih ih ih. H
@@chaseyoung5984 the bush president president bush bush president president bush president is president president bush president president of bush bush president president bush president of bush bush sunshine sunshine sun sun shining sunshine sunshine sun shining sunshine sun sun shining
What's really strange to me is although sealed boxes are very sought after; they have largely misread the market. The most expensive pieces (at least when I was following collecting) were bit mint in box pieces, they were obscure and rare items that either a)never had full releases b)never had any releases or c) some developers tool. While inbox pieces are pricey it was usually this kind of stuff that was the most valuable in large part due to scarcity of their original run and the details behind it's manufacturing
For people wanting an example- Nintendo World Championships (never officially released, was part of a game competition in like a magazine or something in the 80's) used to be called the holy grail of Nintendo collectors, and it was just a loose cart.
I think that you’re missing an important point; if they pump up rare items it only stimulates a few sellers and buyers. If they make widely available items more valuable it creates a wave of movement in sales and in hype. "Wow such a well known game is worth that much? What about other great games?’ I’m no expert but it creates a longer lasting hype if more people can engage with it. I see your point about rarity but these people don’t care about video game history.
I like how Karl casually pronounce “Pawn Stars” as “Porn Stars” 💀
That’s the pun.
I thought I was the only one lol
It's like his name. I pronnounce it Karl, but my friend insists that it should be Carl.
@@glemonsbhatkin514 nice, I think that Shawn and Sean should be pronounced differently
This felt like an actual documentary. My jaw actually literally dropped when Heritage and Halperin came up in the coin bubble segment. Absolutely amazing work, Karl.
James L. Halperin is a jew by the way.
@@AA-lz4wq Likely are Kahn and Haspel, too
@@AA-lz4wq umm and what's your point?
@@GalanOfTruth there greedy money hungry people. That’s the point. Dummy 😒
You're shocked a multimillionaire is manipulating people? Brilliant. You're one of those people who believes Elon Musk is a great guy 😂
Karl Jobst creating a new speedrun category: exposing scammers 100% speedrun
100%? that will take a while
"Exposing Market Fraud - Lawsuit%" more like.
Karl's done a good thing, but these people ARE going to go after him for this. There's too much money involved.
I’d never miss an episode
100% is impossible, the contents are randomly generated with no end
We call it as "exposing wall street%"
It’s insane that graders charge a percentage of the graded value! I figured they just charged a flat fee.
this is standard for every auction house on earth. they all charge a percentage of the total cost, and 40% is standard
@@TacoTuesdey He is talking about the graders taking a percentage, not the action house, you clown
@@TacoTuesdey absolutely not what @Bang Bang meant. Wata charging percentile and not flat is a HUGE conflict of interest
@@TacoTuesdey the AUCTION HOUSE yes. the graders/appraisers absolutely not, that's a massive immediate conflict of interest.
@@LauraLovesHugs you don't get it, he's trying to say that they are all scammers
One thing this kinda reminds me of is when Goodwill (which they even advertised in their own stores) and news outlets started to talk about how someone got a sofa years ago and found money inside. During that time, I hardly saw many at the stores. Once that story hit, many were near the sofas, trying to find money as I seen a guy sitting on one the day after reaching in to see if there was anything inside. Then started the news about things for sale in the locked up cases and people reselling for more, which started the resellers coming in with their coffee and stalking the people bringing out carts and once, even starting a small fight at one store I was at. Since then, prices went up cause of all that and was bad cause I saw things from Dollar Tree that was more than buying them new from Dollar Tree themselves.
Holy shit, the connection to the coin grading companies is wild.
I’d like to see Jim try to file a suit when Karl has done all the lawyer work in this one video
when he started talking about the coins I thought, it would be funny if the same people were involved in both...but then I laughed thinking that was way too ridiculous..
Yes! I thought he was just going a comparative tangent for our sake. Never saw the connection to the two that was about to slap me in the face.
Is it?
You would think as part of the punishment he would not be able to own another "grading" type company. Also, I remember watching a pretty similar report on 60 minutes (years ago) about the inconsistent and even fraudulent authentication companies in the sports memorabilia market.
Thanks for including me as a part of this video. I appreciate it!
nice content
Absolute Legend.
Karl reached out to me after leaving this comment on your channel, Pat (37:10). I then approached UA-camr "Reserved Investments" about the project Karl was working on, and Shaun said he was already on board with the investigation. Great to see the UA-cam community working together to expose corruption in our favorite hobby. The amount of evidence Karl was able to come up with in this video is staggering.
Thanks for including THE POTATO BOY as a part in the video. I kajaijhwhwihwiuhwjihaiuhaija ianjianajinaluihauukhauukha it!
The irony of getting angry at this but defending Blizzard with Diablo Immortal...
The joy of retro gaming has been ruined by greedy profiteers. I miss those days of going and picking up loose carts for $3-$5 bucks, complete games for $5-$15. This video was eye opening and spot on; thanks for the great work!
I have a decent collection and can’t wait for the bubble to burst. I want more people to enjoy these classic games. This hobby should be for those who want to preserve gaming history and most importantly for gamers.
the idea that getting something graded costs a percentage of value instead of a flat rate is just down right fraudulent.
amazing how people will overlook clear conflicts of interest for a gamble to make it rich
It raises concern. Or rather, it really should raise concerns for anyone thinking of doing business with a company having that policy. The fraud really is in the racketeering of the whole thing between circles of key people, but getting a sense for the motive is a sign of working intuition.
@@groomersgotohell Ah. The rich and powerful narrative within a select demographic people-group. That really only comes down to opportunistic individuals having their own bent for control. Dumbing it down to broad labels is…well, dumb.
You'd probably do a simple moving job for a couple hundred bucks.
Would you do a moving job full of fragile valuables for a couple hundred bucks or would you raise the price because handling valuables puts you at some risk
@@russellm2555 There should be a hard cap they don't go over, at least, not a percentage that can forever scale up. Sure, a harder, more valuable item filled moving job you'd charge more for, but you wouldn't be like "Ok, we charge 5% of your total networth to move your stuff" like WATA is basically doing with each item, lol. Also, with moving stuff, or working on someone's house, etc, you have insurance to cover potential damages to help mitigate the risk. You don't take a flat percentage of their networth and try to justify it by saying "well it puts me at some risk" instead of insurance, or ontop of insurance. I've painted multi-million dollar houses. We didn't ask for a flat percentage of the house's value or the owner's networth to cover our risk from working on such an expensive place. We just had insurance. Sure, we charge more for a big job, especially if there's parts that will be an extra hassle or be complicated, but not a percentage that can scale and scale up way too high to absurdity.
This is honestly groundbreaking, professional reporting. Puts the big names to shame. I hope this gets wide recognition and publication. Dishonest profiteering and this retro game price bubble need to end, and those who genuinely appreciate retro games ought to be the ones to collect and enjoy them when prices return to realistic levels. Keep up the incredible work!
Are your a super hero
I'm learning a lot by applying this information to the baseball card collecting community. There seems to be some overlap.
@@mofny its every collectible ever, this is funko pop, hot toys, beani babies etc,i cant believe people still buy into hype and trends like this. Funko pops are a good example, adults spend money they often shouldnt to have a "rare" pop that is only desireable due to a falsely created rarity and imaginary desire. People will pay 300$ for a piece of shit plastic because theyve been told that soon it will be worth 600, only to find out later that the goal was only ever to scam the initial goons out of their 300 and many high dollar funko pop sales are shill bids and inside buyers simply driving up the online price to dump the shitty retail pops for double or triple what they paid. Collecting for the sake of collecting is fucked up, if you like a thing thats a different thing, but many collectors are simply caught up in the attention that having a "rare" item gets them
It's really an impeccable reputation he's cultivated
There needs to be more education on the video game market and what prices are a scam or not. Doing this will drasticly lower the scam market.
I'm a couple of years late but I've known about at least part of this story for years. I had no idea the rabbit hole was this deep, of course.
Videogame collecting has been a passion of mine, and it's getting to the point where I'm no longer able to afford it. It breaks my hearts to see what these people are doing just to enrich themselves even further, as it's pricing me out of one of the few things that's brought me joy and given me a purpose in my miserable life.
I used to give myself a budget of $1000 a year (which is less than 100 a month on entertainment/hobby spending). Before I could easily walk away with over 100 games over the course of the year, now I consider it a good year if I get even a third of that.
I feel bad for a lot of the people who are going to go broke too, when the bubble inevitably bursts. And these criminals will walk away with killings.
I hope one day something is done and this whole racket is stopped, and they face real consequences instead of just moving on to another artificial bubble. But I'm not optimistic.
"They even took the cart on Porn Stars" is what I will always hear everytme. Thanks, Karl
You, Sir, have massively outdone yourself with the amount of research and the work that has gone into the production of this video. I myself have done some investigative journalism in the past and I know how tedious this work can be, going through thousands of pages of documents just to get some background info on some topic, talking to people that are hard to get otherwise, get the best sources possible. And I was just writing, which - from a production point of view - is the easiest thing to do. Massive congratulations!
Appreciate it
@@karljobst ❤💯👍👍👍fingers crossed you spark a change in the industry
I’m a huge retro collector and have been for years. Ive NEVER has any interest in owning a graded game. I own sealed games that would grade high but ive always seen these companies as scams and that they were ruining the hobby. Glad that others are finally seeing the truth. I hope wata is exposed and forced to close.
what if you sell now and buy back when it all crashes
@@Maebbie he does it as a Hobby so he probably doesnt care about the money
I just bought these games when they came out and never sold them.
Same here, been collecting since the early 00's and have sealed games that would grade very high and I have never graded a single game of mine.
How can you have sealed games? Serious question, at least with toys you can watch them, but in games you can only watch the box.
This is one of he most incredible videos I've ever seen. I remember loving your old Billy Mitchell videos but who would have known you would uncover such a massive scam. Congratulations on a job well done, genuinely a hero for doing all this work for the community.
13:32 I heard "they even took the card onto p* rn stars" and was like ehhhh?!
"If I lose $15,000 on this..."
I wish I had "family and neighbors" who would just throw me a $15k stake to gamble away.
he said that in the most condescending way too
@@jamesderepentigny5446 all decent and heallty people.
Yea, sure.
@@milosmevzelj5205 he said wealthy 😜
All on red!
me too, but just could, even if they wouldn't.
Billy Mitchell: "I'm gonna be the scummiest and most disgusting con-man and fraud in video game history"
Jim Halperin: "Hold my coin collection"
Deniz Khan has a scummy haircut just like Billy Mitchell
Fun fact. Kahn and Halperin both belong to a certain group that specialises in usury and speculation. It's amazing.
Bernie Madoff: how cute
Nah man Deniz is cool I think he should be head of Heritage for it also lol
@@firaselachkar4159 Eric H. Naierman also !
I think a big part of mainstream video game collecting (at least, in my experience) is having _working copies,_ not just museum pieces. It's cool having a piece of history that you can still use. I don't care about what my games are worth. I care that I have them and they work.
I think this might be the first youtube video to ever pre-pop a speculative bubble. I followed the Heritage Auction tag on Instagram because I love looking at old coins, and you would be shocked how far this video reached. Every comment on random vase posts was referencing this vid. It rightly tore down the reputation of these companies. I'm really excited to see how the internet continues to affect the market, for one guy to decrease a company's value by likely hundreds of thousands if not millions of dollars is thrilling. This is Dan's NFT video for the retro gaming world.
*Wooow* that moment when you made that Halperin connection between the coin and video game bubble...
Investors riding high during a recession period. ”It’s a big club, and you aren’t in it.” Pretty sure that was from George Carlin.
Real eye-opener! What a scumbag.
That was some real Ace Attorney stuff ngl.
As soon as I noticed Halperin's name, my brain totally did a *record scratch noise*. Wait, WHAT?! lol.
like, how do you even find that? can you do a search for any place his name comes up? or do you have to already know to check into coins?
like how do you make that connection? I'm so impressed
Karl going from discussing gaming drama to literally exposing corporate fraud is amazing, you go man!
Lol the ghost of Karl Marx has possessed this man
Well not really. It’s little more then insinuations and tangentially related events, with a heaping of personal incredulity. It’s realistically a starting point and Hopefully someone else will be able to do some actual research gather evidence that can actually make a change.
@@kx7500 You don't have to be a marxist to be disgusted by the likes of Jim Halperin. The guy's a crook. Plain and simple. This is the polar opposite of a "free market".
@@wallyman292 you do need to be an anti capitalist if you want to offer a solution to the problem, though.
@@kx7500 Really??? I"m a capitalist, and I'd offer the solution that this man halperin and several of his accomplices need to be arrested, fined heavily (for the second time in halperin's case) and put in prison for a number of years.
Retro collecting was fun for a few minutes there before the buy-at-any-cost collectors drove up the prices.
James Halperin? 🤔
Early life check ⌨️
EVERY TIME
Yep.
I swear they're gonna remove that part of the early life section pretty soon
He's an early lifer? Every damn time!!
Karl really likes poking bears and it's great. I hope this exposé doesn't lead to another series of spurious lawsuit threats
Let's support him, if it happens.
Hopefully there will be people with the means standing up for Karl.
He is poking bubbles
There's way more money behind this. This won't be "spurious lawsuit threats": this will be a lawsuit to shut him up, and it's going to come. He's gonna need a legal defense fund already, can pretty much guarantee.
Or they just send a hit man.
This is a legitimate credible piece of investigative journalism. Incredible job, Karl.
I mean he just explained how a pump and dump works. One of favorite books is Extraordinary Popular Delusions and the Madness of Crowds. Lists every single bubble from the last 1000 years in detail.
@@sorsorsor11 Yeah, but he also provided a lot of evidence for how the people involved with this are tied together, which is the investigative part.
@@sorsorsor11 Which video did you watch? He explained a lot more than that...
@@danieljensen2626 Oh yeah no question, but you cant prosecute. Its like pumping up the price of dogecoin or a minecraft silver on a server. There are things that are totally unethical frauds, but legal.
@@TehCommentMaster LOL not dissing him, he did a great job, just saying this happens literally every day. Or maybe I just spend too much time watching stocks and reading SEC filings for a decade...
"You may need to take notes or watch multiple times".
No mate, you did a perfect job and it was easy to keep up and follow the players.
Karl needs to do one on the housing market too, realtors, home inspectors, banks and fake bidders. All destroyed any chance for middle class and young people to ever own houses
36:35 Was awesome working with you on this video, Karl! Thank you for standing up against corruption in the realm of video games!
only thing left is to go after counterfeits and pirated copies. Market is large but also scams the user with copies of video games that are legit almost unplayable due to piracy checks.
Here before Karl gets sued for slander.
Lucky for Karl Truth is a wonderful defense against slander ;)
@@DietArdee if its true
@@thaddeuscosse9527 if you have reason to believe it's not I'm sure myself and a lot of others would love to see it. Does appear like he has done his research here.
Karl: ah sh*t here, we go again... anyway, who's hungry? I took a cooking course on Skillshare.
Yay :D
This is amazing. I can't believe you spent so much time on this! This type of thing happens a lot, but you really tracked down every detail . impressive.
I live in York, PA where the Just Press Play chain is located and I used to love going to that store. This is absolutely devastating.
Halperin's early life section on wikipedia is quite interesting, commiting fraud since he was 13 years old! Now that's a man dedicated to his craft.
More people should see this!
This man was on the grindset from an early age
Early life shows he's a member of the small hat tribe every single time.
Can't you start a lawsuit against those ppl. ?
You can just take this video to the police 😂.
Halperin is from the blue blood ruling caste families for sure. This isn't the first one Karl has unearthed; Bettencourt and his fake Mario speedrun was the other. Halperin's wiki is a goldmine. The fact he's pulled the same scam in the coin market show's he is protected by some powerful people.
His niece Molly DeWolf Swenson was a White House intern under the Obama administration, for example. Halperin also attended spook feeder schools including Middlesex School, then later Harvard. Halperin also endows the James & Gayle Halperin Foundation, so he knows how to run a charity tax evasion front as well.
If you need some extra vomit, he also wrote a sci-fi novel called *The Truth Machine*, which is about a genius who develops an infallible lie detector, that every citizen must pass in order to get a job or license, thus "eliminating dishonesty in all parts of human interaction..". Of course, the inventor of the machine created a backdoor, allowing him to avoid detection. Gee, this story sounds familiar..
It's the same problem with fossils market.
Now, exceptional fossils (like complete skeletons of dinosaurs) are sold at prices so big by auction houses that national museums can't buy them. Even when multiple museums band together!
Now, those paleontogistic tresors are disappearing in private collections and will never be studied by reserchers.
;w; Sad that so much knowledge went by the wayside in the pursuit of $$$.
They are missing an opportunity. They should rent the fossels back to the musiums at a premium.
The capitalist market has reached a choking point, the rich are too rich and the poor are too poor. This kind of shit is going to continue until the complete collapse of our society as we know it.
@@barry1902 uh huh..
somehow i doubt your solution involves more freedom and liberty
@@cosmichemistry Unfortunately, "freedom and liberty," in the sense of no restrictions to what one can do, are exactly what led to this mess in the first place. These people are too _free_ to restrict others' freedoms themselves. The freedom to restrict others' freedoms is one that is worth restricting.
It's the same kind of deal of "is it tolerant to tolerate another's intolerance."
You've taken several phrases that I've heard but never understood, and explained them in an interesting way that didn't talk down to me. Well done! Excellent video. Thank you for making it 😊
Now they're doing this with VHS tapes.
Karl my name is Mark. I am a video game player, collector, and avid trader of video games with a collection of 6050+ games in my collection. I am friends with people like Michael Thomasson who held the Guiness Book Of World Records title for most video games and talk to certain other collectors who are good people.
I have said for the longest time that since the market started to rise in 2008, that something was going on and things were being manipulated. You don't just have places like WATA, you have people who buy games as well as companys who sell on ebay and also physical stores buying their own product.
There are massive shady practices and I pray that this video helps expose more of it. The main thing I think that needs an anecdote to this is that loose games have suffered immeasurably from this, where it was not mentioned enough that loose, and complete non-graded games are skyrocketing. Ebay records prices for thier "buy it now" even if a game is not delivered/canceled delivery. Manny shady companies are buying games and selling thier own stock to drive the "buy it now" up. They are mostly american companies but I speculate a few canadian ones as well.
Also one more thing, there are communities of individuals who choose a game to make it scarce to skyrocket the prices just so they can have the certain game they own, valuable as a personal pride thing, not letting others in the "cool kid club" unless they pay.
I appreciate you making this video and validating things I have said for almost a decade.
Hey, I just started this video and I'm not sure if the topic of Reproduction Carts comes into play. I wanted to ask, considering you're so deeply invested in the community. I thought it'd be neat to hear your opinion. I dont have as large of a collection as yours, just a boxfull of Genesis cartridges and some ps2 games. Some are CIB, some are not. However, when it came to the Genesis games, I picked up a few reproductions for the simple purpose that I wanted to add a physical copy of the game to my library. They were never marketed as a genuine cart, I got it at a reduced price. I can see the issue of reproductions when you're actively attempting to FIND a genuine, and the two are getting mixed together, however I don't hate the existence of them. Where do you stand? Thanks!
So to everyone who actually wants the game, because it is that specific game from your childhood and not because of money: Don't buy anything in the next couple years. Wait for the bubble to pop, then grab the stuff cheap.
And to those who just want to play said games: Just go with emulation at this point. It will become more and more important for preservation anyway.
I remember buying a sealed copy of Aria of Sorrow on GBA long before this nonsense started happening. Opened that sucker up and plugged it into my Classic NES GBA SP and had a blast going through it.
All these collecting bubbles cannot burst soon enough...
@@CyberDragon10K I bought sealed boxed set of Lunar 2 Eternal Blue Complete many years ago and opened and played it myself.
@@CyberDragon10K i fucking hope so cause then i can grow my atari 2600 collection and probably afford the required parts to fix it as well.
How far is the price going to plummet?
@@the_kovic sadly rogue squadron is still an issue
Jim halperin's early life checks out lmao. F*cking knew it the moment I saw him. The others don't have their own page, but I'm 80% sure they're the same.
Every time.
Everystein Singleberg Timeowitz
Ground breaking videos like this shed so much light on the topic you owe it to the world to keep uncovering the truth I imagine you making an incredible documentary.
I just want to point out they are already doing this with NFTs manipulating market, owners and creators buying their own NFTs to inflate the price
NFTs were doomed from inception to be speculation bombs. I'm sorry that many young artists will get left holding the bag when the bubble pops.
I laughed at even the idea of NFTs. Sounded even more ridiculous than the virtual real estate scam, and twice as corrupt. Nobody believed me.
No single tool I have has been more useful than skepticism these past 7 years or so. I have been vindicated every single time. Let me tell you right now, especially in our current sociopolitical climate, there is nothing more powerful than refusing to be manipulated. If you think that something seems too good to be true, or that something doesn't add up, or that something is missing, *believe yourself.* Do not let yourself be swayed by anything but your own research and intuition. Know when you are being played, and by whom. The harder you are being pushed to blindly accept or believe something, the harder you need to push against it. The louder something is being screamed, the less attention it deserves. The more widely accepted something is, the more scrutiny it warrants. Do not let yourself be a statistic.
@@ootdega I agree with you.
This shit is done in every market. Art market, stock market and worst of all the property market
Oh naturally. NFTs are probably the worst scheme of them all as you don't literally have anything physical to hold. You don't even have to buy it to own the image.
"If I lose 15 grand on you, It's not the end of the world." God, I cant imagine being in that position
I can imagine it being there but still outrageous when you think about other people barely making ends meets, it’s an disgusting attitude to have and very wasteful.
There exist way richer people than this. Yes him and his friends and family are clearly upper middle class but I don't see anything wrong about this. (Other than the dishonest market manipulation)
@@herrabanani Bruh how can you not see the grotesque disregard for $15,000 when that amount is monumental to 60% of the population. That is not middle upper class
@@herrabanani i had no idea rich people exist
@@MYNAMACHEF imo middle upper class is about 100,000 a year, but that might just be where i'm from
And now this is happening with VHS tapes 🥺
"if I lose 15k on you, it's not the end the world"
Me: trying to figure out if I can buy meat tonight.
Thanks Karl, for including me in the video! Awesome work!
So apparently Wata games replied (from Nintendo Life):
"Wata Games is the trusted leader in collectible video game grading and we're honored to play a key role in this booming industry that we are incredibly passionate about. We're humbled by the support of our thousands of customers who trust us to provide accurate and transparent grading. The claims in this video are completely baseless and defamatory and it is unfortunate that Mr. Jobst did not contact us to give us the opportunity to correct him."
Seems like they wanted to "convince" Karl to "reconsider" details in his video before releasing it
ugh... they just write the expected. blablabla customers blablabla trust blablabla we are good company.
Notice they didn't mention any specific claims that are "baseless". They could have easily said "No these people aren't directors and have no financial stake in Wata" IF THAT WERE THE CASE. But instead just run of the mill corporate speak for "we don't like it when you point out our shitty practices". Reminds me of the recent Homestuck video by Sarah Z.
download this video just in case shit happened...... At high quality.
And they will be releasing their publication reports to make people feel better?
Also, Jobst shot back at Wata Games's response by tweeting this gem:
"We have conducted an investigation (and in record time!) and find ourselves to be innocent."
Hands down one of my favorite vids of yours so far. Amazing work here!
As a retro collector who lost a huge chunk(not pat the nes punk levels, but still about 3 grand total) of their collection to water damage about 2 years before this bubble this pisses me off so bad. I can barely find stuff out side the internet anymore.
I suppose I should say it's good they got sued and the market is going back down, i was unaware this was the reason prices spiked a few years ago when i decided to start collecting again. The old nintendo stuff still hasnt gone down enough, but im sure itll even out soon. Used to grab nes consoles from thrift stores and the like for between $20- $50 now they go for like 180 online , and goodwill and other thrift stores using online auction prices has ruined alot of those places. Saw an unsealed wow TBC collectors box in rough shape selling for $600 at a thrift store the other day. That's what they go for sealed online, and in good shape no less. Shit was bonkers
"When people realize how common some of these games are, prices will be destroyed."
God I hope one day I can find Earthbound for under $200. Its disgusting.
I actually bought it last year for $130. Was really surprised with how the price skyrocketed a year later.
@@Jackie_Fhan just the cartridge. Cib costs around $1000
@@abdallahalbaiti3252 COVID has had an impact on prices in recent months.
That's going to be a tough one, mate... Not a lot of people could afford a $100 game, when it came out, so that's always going to contribute to it's rareness. I know that I wanted to buy Earthbound, as a kid, but just couldn't afford it and had to get Illusion of Gaia (was only $60-$70), instead.
I remember Best Buy had dozens of these for $10 each or something when N64 was out.
Thank you so much for creating this piece! This is legit journalism that true gaming websites should be covering. I'm a retro game collector myself, and any legit collector can tell the prices right now are insane and inflated. Most of us collect games because we play it and we want to preserve the history of it, not to resell for profit. For the most part, we wish it wasn't so expensive so future collectors can get into the action. WATA is the biggest scam right now and I avoid graded games like the plague, it's clear the grading system they use is tainted. Who knows how many fakes also get through.
Watch how "true gaming websites" all of a sudden care about this subject soon.
It may sound like a silly question, but can't video games collectors use this trend to their advantage ?
They have hundreds of retro games they bought for much lower than the current price. They could make some money selling them now, and buy more once the prices go down.
@@fabienmorival669 The thing about that is, the auction house only sells games that have been graded through WATA. Its those ones that go for ridiculous jacked-up prices. If a games collector wanted in on that action, they'd have to actively support the companies that are responsible for this market manipulation, perpetuating it to even more ridiculous extremes. And that would make them no better than scaplers.
@@fabienmorival669 Not a silly question and this is different per collector. I can only speak for myself, but the most important think is its extrinsic value. My CIB copies of my video games that I had as a child each have a specific personal meaning to them. They were given to me by friends or family members, some have passed away. I also bought a lot of those games personally from a store so I know they are authentic. You're right, I can probably sell it for a lot of money now and rebuy a different copy for cheaper. BUT, If I sold those games, I will never get that exact copy back. It loses ALL of its extrinsic value to me. Now on the intrinsic side, buying used games online as a collector is not as easy as it sounds. The vast majority of games sold online are either by collectors getting rid of their inferior copy, game stores trying to flip a game they overpaid for or games that had multiple owners. These games often are incomplete or damaged in ways only collectors will notice. Furthermore, there are A LOT of reproductions out there and they are getting better. Sometimes the manual or artwork is a reproduction but everything else is authentic. Therefore, I'd have to spend a lot of time talking with sellers and getting additional photos trying not to get scammed. Some of these sellers themselves, don't even know they have a reproduction piece. All and all, collectors for the most part collect for the love of video games, not for profit. Selling our valuable collections just to rebuy a different copy in similar or better collection is just too much work.
The other issue I see with this is, whos to say the box being graded is even real, or if theres even a game inside it? Whos going to think to invest in something like this to crack it open and truly see and make the item 'worthless'? No one... for all we know, they could be putting a blank cart, or something weighted insidew, have a reprint of the box and seal it themselves, than bam, 'grade' it some how and be done. Profit.... It's a scam is so many ways and whos to say if there doing this or not. There really isn't any way to tell and with the prices as they are it's just... yikes...
It's really good you exposing this stuff man!! Greetings from Melbourne!!
Wow man, you did a wonderful job researching this. Hopefully you blew the lid off this racket! You are awesome man, keep it up!
I've never heard of any kind of appraisals that cost a % of the products estimated value, and not a flat fee. And I work with professional appraisers. Absolute scam to charge like that, as it OBVIOUSLY means they'll over estimate everything.
Right?? Huge conflict of interest just in that one aspect of this whole mess...
As someone who's younger brother is getting into higher value pokemon cards, many of those appraisal services also take a greater fee depending on the value of the card. This makes sense to me though because the value of any individual card can be easily verified, and getting a high rating generally boost the value by a predictable amount.
Also for higher value cards, they have to be that much more careful with it to make sure they don't cause any damage themselves, something that is super easy to do especially when many flaws can only be seen through a jewelers loupe or something similar.
It also makes lower value cards (~$100) much cheaper to appraise often at around $25 when the value can increase by much more than that with a high score (which is luck of the draw considering most flaws are printing errors).
Also since there is competition in thos market, there are appraisal companies who's decisions have ruined their reputations, so in this field they have to be careful and appraise well to be trusted by the community to maximize their income.
Yea, auctioneer here- appraisal fees on a sliding scale based on the "value" of the item is a racket, plain and simple.
It flatly makes no sense why it could or should cost more to evaluate an object/game
This video is the pinicle of "I'm going to ruin this man's entire career".
Karl has presented a crown court worthy level of detail to spank these muppets with and I love it!! There's still 20 mins of the video left and my jaw is just on the floor. Thank you Sir Karl
@@Mocha. how is this man not behind bars 🤷🤦🏻♂️
@@Don_Dilla *13*
I have to give you credit for the fantastic detail you go into so even the layman can grasp context thank you 🙏
I really hope this video reaches the people it needs to to stop people falling foul to these shysters
I used this for my senior research paper, thank you
This makes emulation look so much more attractive, especially to people who actually want to PLAY the retro games they search for and get.
That's been the way with retro games since good emulators started coming out. Collecting is on some level about acquiring the real items - it's about the thrill of the hunt, getting the real object to hold in your hands. But if you just want to experience the gameplay, the emulators are just a Google away.
Seriously, and I have replica SNES and Saturn controllers that work great for any sega or nintendo emulated games, and the Playstation controllers never changed much, so using the PS4 one on old PSX/PS2 games feels great. I miss cartridges and the giant physical collection I once had, but it was all stolen, so I just use emulation now..
This actually puts me in a decision making dilemma, because on one hand I love owning physical copies of the games I play, but on the other hand, emulation would be so much easier for playing the games I want and I wouldn't have to go through the nonsense of dealing with overinflated prices
@@KipsterMc Maybe you could do both - emulate the games you want and if you're able to get the physical copies, get those as well.
@@stephaniethebatter7975 That is true. Really, for the games I want, I can probably get most of them physically as long as they're not Nintendo games
Deniz Khan's reply to every question
- "one day a video game is going to sell for over a million dollars"
51:22 spotted :^) , real quick shot but its there
Dude just watch him giving a tour of "his video game collection". He says things that make no sense.
This video randomly came up on my feed and watched most of it because it was really interesting to watch. I'm a huge sneaker aficionado and i see how both the video game and sneakers market can relate. Prices of most of these items are "hyped" on purpose to create demand and ultimately drive prices up. The people buying the most expensive items aren't real collectors but instead companies and groups of investors driving the market up on purpose to create profit.
That GTA and Mass Effect music in the background is a nice touch
Legendary video my friend.
You are a bit late on the verified comment group
Austin!! Great to see you here :D
@@solanumtuberosa Austin is a busy man
eyy it's the computer guy
Damn, everyone's here, Austin, muta, critical nobody, shank mods
Karl, as a collector for the last 20 years, I have to thank you for making this video. Prices were already ridiculous with every legitimate company trying to get into the market, and these guys have only made it worse. Hopefully, your video will help push these people out of the market so we can all get back to business as usual.
Yeah, I mourn the loss of my original Pokemon HeartGold. The prices now for getting a legitimate copy?
@@RooftopRose079 same man; my house got renovated in 2014 and after that I couldn't find it again.
During that time it was around $80 new, then in 2018 it shot up to $300, weird thing is it's still around that price and the pokewalker accessory is really hard to find; sellers marking it over $100, feels like market manipulation.
On my lost game, I had all the event pokemon from Ruby/Sapphire to the last ones for Heart/Soul Gold/Silver, felt pretty bummed out when I couldn't find it.
@@RooftopRose079 If it's any consolation, the bubble will burst and prices will come down, be it in 10 or 20 years (hopefully doesn't take that long).
@@Zed-Corps Yea a few years back you could sell a game and get it back later for a smaller higher amount but now if you sell you are expected to pay 3-5 times the amount in a year span. Sad
And we had a perfect example of speculation inflating prices just a few months ago. When Sony announced they'd be shutting down the PS3 and Vita stores, prices for the games skyrocketed. Then when Sony changed their minds after fan backlash, the prices went back down. Vita games are still kinda expensive, but that at least makes some sense. Most Vita games didn't have hundreds of thousands of copies printed like PS3 games did.
A sealed copy of FF7 selling for $140,000 sounds so absurd. Like, There's no reason it shouldn't be anymore than a few thousand at MAX. Its used price is below $40, even for a high profile PS1 title. How insane.
Excellent investigation. Very informative and rarely do i watch a video feeling completely convinced by arguments, but you make a case based on compelling evidence.
Speedrun challenge "Heritage"
- Get rich quick
- scam people
- ruin a market
New world record! “Super smash bros melee announcer voice” 😂
Who'd they scam?
@@bkirk0510
- Boost up the price of an item far beyond its actual worth with media propaganda and under the table deals with auctionhouses and sellers (sellers with high position in said auction house)
- normal people buy over inflated games because they think the stuff is worth it
Id say they scammed everyone who bought games through their auction house.
@@tomoda7602 lol yeah they totally forced/scammed people to buy games through an open auction by going on Pawn Stars. Unless there's concrete proof of shill bidding on their auctions, which there isn't yet, then that's just plain false.
I just thought of the perfect name for this awful scandal: WATA-gate
Underrated Comment Alert 🚨
That's perfect!! lol
Good job
they are creating a business - remember good analog office keyboards replaced by cheap chineese crap and they raised the price to 1500% and gave them fancey names by companies like logitech -no noname really good keyboard - only cheap trash at those prices - this were around year 2000 - these guys were big companies creating a business
This needs to be top comment
What a brilliant video. Incredible investigation, Karl. Thank you!!
I bought cheap game loading tools on eBay that let me play ROM files on my consoles and relive my childhood without breaking the bank. So many childhood games that were reasonable just a few years ago are now hundreds of dollars each. God forbid you want to play games like Pokemon, Silent Hill, or Rule of Rose.
The biggest fraud of these grading companies is that they charge progressively more for their services is the item is high value. Looking at, grading, and then encasing a collectible should be a flat cost.
Oops, this was worth a million dollars! Give us 10%!
Yes! This is a problem for so many collectible communities, they shouldn’t be able to change it based on the worth of the collectible, that’s bullshit.
Exactly, charging you a fee based on the price they assign to your item is such a massive conflict of interest, it obviously incentivizes them to inflate the value as much as possible. It astonishes me that these companies aren't immediately shut down for the obvious scams that they are.
Same shit realtors do.
@@maythesciencebewithyou No. The difference is realtors collect a percentage of the sale price on an open market. CGC and WATA collect a progressive fee based on the speculative value of the comic or game. No sale has occurred. No open market has established the assessed value for that item. Nothing but an incentive to rate the collectible with a high value so that the fee is higher.
The tulip bubble is hilarious because it was one of the first memes
Your work is amazing, thank you, as a poor retro gamer, i collect to play, not to amass a collection. I had my home broken into, and much of my retro game consoles and games stolen, and i cant help to wonder if this frenzy they started is why those burglars targeted me.
Ill never be able to replace my stuff, and thats caused a massive depression for me. And part of why u cant replace it is because i just cant afford the stuff with the rising costs (to replace just my atari jaguar would be 400-700 dollars not including the box, and i had the box too)
Thats so horrible Im so sorry for you and I hope somehow someday you can get atleast some of it back
I feel like I am actually watching a journalist doing in depth research about a topic. It's a breath of fresh air actually listening to in depth research on a topic and not just an opinion piece we see every night on CNN/MSNBC/FOX.
I’ve got a guy in eBay whose bragging about owning an original sealing machine- Karl figure out to Dm me i think you’re going to want to read this conversation
He is a journalist at this point, i think you don't to have that label or career to be recognized as one, the investigation, work and passion he has is more than enough to be one
My thoughts EXACTLY. Why can’t we have some real journalists. Nobody believes anything anymore
@@dean7528 Hi. When you say an original machine, you mean one from a game company's factory?
Pultzer prize time
Spending thousands on games I'll never play? Sounds like my Steam library.
The difference is that your steam library can't be sold and doesn't actually exist should Steam collapse. I, too, have noticed the number of unplayed games I have on Steam.
@@Beanzoboy You can totally sell your entire steam account if you wish.
@@theov3rmind The difference is that your Steam library isn't just one game.
@@Beanzoboy Steam library can be sold, although that would be breaking ToS.
Also, while you don't fully own your purchased games on Steam via their ToS, your game downloads contain full files of your game. All you have to do is to bypass the Steamworks DRM (which is pretty easy; the reason why pirating still exist to this day), and you get yourself your whole game.
Kind of why Steam & GOG still major successes while Google Stadia and Amazon Luna aren't; the latter two completely prohibit you from downloading the games.
Nice.
This is an amazing video. A clear and easy to understand video explaining basic market manipulation. These things are happening on major scales and I’m glad its being recognized even in the gaming community.
14:19 oh you were saying *pawn* stars, that clarifies things💀
I'm involved in the retro game industry.
When I heard these headlines, I instantly thought "There is something wrong about this. I'm not sure what, but it is completely fraudulent evaluation." It wasn't just hedge funds snapping up new investment verticals in a pandemic bubble. There was something just 'off' about it all.
Boy, I didn't realize how 'off' things were. This was an excellent documentary. Dude. Honestly.
Amazing work. Truly amazing.
Couldn't agree more!
Same, Like $1 million for a game that everyone has.
They been doing this in every industry. In every facit of life for dacades now. Same old scam.
Same
How are you involved on the retro games industry?
Another reason why emulation will never be stopped
Emulation is more about nostalgia, then it is about collecting...
@@laurensa.1803 i wouldn't say nostalgia, it's more about preservation
@kook Yeah, it's not like there's only 1 reason for emulation
@kook both, imho.
Emulation absolutely is not the same. I have been collecting since the 90s. The good news is none of this stuff is actually rare.
In around 1998 I found an entire shipping carton of "beat em and eat em" an allegedly rare adult game for the 2600. A whole shipping carton full of sealed copies. I literally found them at a pawn shop.
NONE of the games are rare. I have a tooth protectors 2600, a chase the chuckwagon and a number of other "Unbelievably Rare" games that I found at a flea market less than 20 miles from my house.
ALL of these games, ALL OF THEM are made of injection molded plastic. Injection molding plastic simply is not viable in small numbers. Even in the 80s, the molds cost thousands of dollars. The PCBs and ROM chips are only viable at numbers. To make a hundred cartridges would make each one so expensive that it would have sell for hundreds of dollars.
Not only that, but every game mentioned in this video that sold for stupid amounts of money are THE most common games out there. SMB for the NES? There are MILLIONS of them. I guarantee you there is a box of these things shrink wrapped in some warehouse.
You can still buy most tubes for classic radios. Some guy in Florida just died with a warehouse of over a million tubes. OVER A MILLION. There are still NIB tubes from the 1920s. The very oldest tube types and there are still many, many, many of them.
There are many thousands of coins from the Roman Empire still in existence.
I just stumbled across this channel and I really dig it. This guy really does his homework
Your research is phenomenal.
Your vids are getting more and more epic. What a journey from speedruner to serious investigative journalist.
Being called a journalist is an insult, more than anything
@@arcanehornet Unfortunately, but the point still stands. Journalism outside of the rare instances and few exceptions is a dead industry.
Love your art TenHun!
@@arcanehornet ok, how about Public Investigator?
@@arcanehornet nope it's not , look at the brave female journalist in Afghanistan and an indian journalist died covering the talibans. A lot of journalists do deserve respect .
"Collectors are spending thousands of dollars on games they will never play"
My steam library with games with 2h playtime:
At least you play them, There are games on my Steam library I have never played for some reason xD
Its funny because i have like 8 new games i bought this year installed and still not launched once
At least you paid them, I have friends who pirated FREE games. I mean, come on now...
forreals, hopefully the steamdeck help remedy it lmao
The worst is when you realize you want a refund and it's either been 15 days or your playtime is 121 minutes.
13:30 I never realized the pun on the show's name until now
This is why i plan to buy the console and (after modding it of course) just play programed/burned/ripped/downloaded games.
There's a lot of older games I want to play and unfortunately emulators go so far for N64, PS 1, 2, 3 games.
I have a TUF Gaming x570 plus mobo, Ryzen 5900x, 32 gb Corsair Vengeance (2x16), 3080 ti, 2 nvme M.2 SSD (1 for windows and core apps, 1 for games only). And even with that quite a few games have timing issues, video/cut-scenes skipping frame issues... Don't get me wrong, the graphics can be on max and I get 60 fps thanks to the hardware, it's just that in half the games I've tested there's just no comparison to the console gameplay-wise which is a huge shame because there's PLENTY of lovely features that emulators allow that you don't get with consoles.
Anyway. This was pretty well put-together. Nice job, Karl! 👍
With a intel cpu gaming laptop works emulation way better than ryzen amd cpu.
These super villains be watching Karl's videos like "I would of gotten away with it too, if it wasn't for that meddling youtuber!" 😆
@@alt4950 Wall street
You say that like they aren't getting away with it. Your Scooby Doo quote implies they were stopped
They'll still get away with it, even if caught, even if fined, because laws only functionally apply to the poor. They'll pay their million dollar fine and walk away with their 100 million dollar profit, as always. It's just an expected fee to them. This is capitalism "working."
@@Dr.Spatula 1 million people have seen this video. Even if they weren't arrested, 1 million people now know not to buy from them.
@@delphicdescant Big true, there's many documentaries about the subject. At least people who have seen the video won't support them.
This is the kind of journalism that truly deserves to be protected. Another dead ringer, Mr. Jobst.
look at my channel about the clintons. the clintons did this shit in the 90s big time with property and drugs. its super easy to verify
another _dead ringer?_
for what?
@@selfademus he was right on the bell, hit the nail on the head.. are you Bailing what I'm Swathing here, or should I explain further?
Tyler Brewer
pretty smug fer someone so clueless.
learn what a _dead ringer_ is, doofus.
@@tylerbrewer8863 he's got you on your use of dead ringer. I can't believe I liked this comment without spotting that.
Man you are a real hero for all gamer enthusiasts. Great investigative work 👍🏻 Please take care, who knows how these people will react when their business is going to be ruined because of this informations
What a great video, so much information, hope this has created some doubt in those scammers.