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I believe they’re referring to buying up all of the copies of the hot new game or console, then reselling them above MSRP to make a profit in a time of scarcity.
I don’t remember scarcity being as much of a problem back then, nor was demand high enough for scalping to be common. It might have been less legal, too. As far as tickets to sporting events and concerts, back then it was illegal to resell them for more than face value in my state. That changed 10-15 years ago thanks to lobbying from Ticketmaster and affiliates.
I think that it was the other way round for games. Laws have been developing all the time towards advantages for copyright owners.
Most people tried to get software (games) for free rather than paying more :) but as I said, everything was done back then.