eBay manages PS3 preorder auctions with an iron fist

We know that it's a business decision that will save ebay many headaches come November 17, but we'd also like to think that this Internet giant is looking out for the little guy. Today, ebay issued a new auction restriction that officially limits the sale of PS3s (and some other toy that we've never heard of) prior to the system's launch:

Sony PlayStation 3 and Nintendo Wii Pre-Sales. These highly-anticipated video game consoles will be in extremely short supply during their initial launch. During the launch of the similarly-released Microsoft Xbox 360, we saw a high number of well-intentioned sellers unable to meet their pre-sale obligations to buyers due to restricted supply, as well as an increase in fraudulent listings for these items. To prevent similar problems with these latest releases, the following restrictions have been placed on pre-sales for the PS3 and the Wii:

• Only one of each console can be listed per eBay account prior to the launch of the console (PS3 is expected to be available on 11/17/06, Wii on 11/19/06).

• The seller must only accept payment through PayPal, and have at least 50 feedback with a 98% or greater positive rating so that they qualify for PayPal Buyer Protection.

• The pre-sale item must be listed in the 3, 5, 7 or 10-day formats, and cannot use Buy It Now.

• The listing must include a photo of your pre-order receipt in the description.

Hats off to ebay for helping to minimize disappointment while allowing capitalism to do its thing by not completely halting all PS3 sales. Not every company would face this challenge and still support free trade.

[Thanks Corey]