> Value is not a function of rarity.

They're not exclusively linked but it would be ignorant to deny a relationship.

> Palm pilots are pretty rare. And a lot of people liked and used palm pilots. But even brand new ones in their box are worth less than $1,000 at auction right now.

Again, retro computing hardware generally sells for less than retro gaming hardware. Also while boxed copies of specific brands Palm Pilots might be rare, there is a lot of PDAs still around and not a lot of people (compared to the retro gaming scene) collecting them. So prices are naturally going to be lower (market forces et al)

> You can only play Super Famicom games on this Nintendo Playstation. No games were ever created specifically for it.

I think you're missing the point of why some people collect. Sure, some of us like to buy stuff exclusively to play but there are a lot of people who like to buy simply to own.

You get people who collect full sets of PAL or NTSC games for a given console even knowing that they would never play most of those games. You get people who like to buy factory sealed games or hardware with no intention of opening. You get people who like to own variations of consoles (eg Pokemon, Animal Crossing, themed Nintendo Switches) even though they're all functionally the same and you can't actually play on more than one at a time. It's like stamp collecting for some people; it's not about the practical value but rather just the buzz of owning something uncommon or a collection. The more difficult or the higher the resale price could be, the greater the prestige.

Not everyone gets this mentality and to anyone on the outside it seems totally nuts and a complete waste of money. However regardless of your opinions, these people do exist and it's a big part of the retro gaming scene.

> This is purely a museum piece, not a collectible item that will gain in value over time.

Of course it will gain value over time. Inflation alone will see to that. However, like collecting anything from popular culture as a retirement nest egg: there is always the risk that the market could bottom out as people who grew up with those systems die off. That's what happened to the original gauge Hornby rail collectables (back when they had a dedicated 3rd rail for electricity). Trains used to be worth a few hundred each until recently when all the adults who collected that stuff started dying off. Now they're practically worthless.

The same might happen with retro gaming as well. Though as long as Nintendo and Sony are actively making consoles, I predict there will be interest in the Nintendo Play Station. So I can't see this particular piece losing value.

> Value is a function of supply and demand.

I'd already said that when I said things are only worth as much as someone is willing to pay. What you're ignoring is the real demand for people collecting retro gaming hardware.

> There are thousands of chinese porcelain pieces out there worth hundreds of thousands of dollars each. Some are worth millions. Because China is a wealthy nation now filled with hundreds of millions of people trying to recoup party of their culture that they sold to the lowest bidder of yesteryear.

> 100 years ago, a lot of these same vases that are now going for millions of dollars were literally being drilled through their bottoms and made into lamps for middle class American households.

That's true for a lot of collectables though. There's a period when old stuff gets sold off cheap because they're superseded by newer stock but not old enough to be "retro". Playstation 2 and 3 stuff is pretty cheap at the moment but in 10 years time those prices will start to climb. 5 years ago I could pick up Sega CIB Mega Drive / Genesis games (CIB meaning "complete in box" -- so with manual, game and box) for £5 to £15 (£15 being the expensive end). Now They're frequently a minimum of £15. Prices have literally doubled in 5 years. Same is try for the Dreamcast and Saturn too and in their cases prices climbing fast because those consoles had a limited life so there's some rarity attached.

Source: my dad (rest in peace) collected model railway. I collect retro gaming and retro computing hardware. So I'm rather familiar with the scene (in fact I knew about this auction from my buddies in the scene before it was posted on HN).