American Thanksgiving Day today. We, at the etail site on top our block-long mother-ship of retail stores, were stressed all week preparing for the busiest retail day of the year tomorrow. The customary shopping part of the season of social events surrounding traditional end of the year holidays has been brought to a new low of crassness by us and others advertising "Black Friday Sales". The black refers to retail businesses' clearing a profit for the first time all year -- getting into the black on the sales charts. All profit from now to the end of the year! Hurrah! Happy Holidays!
I understand that ony profitable businesses can continue to provide the goods and services to the community and that people giving gifts to friends and family is lovely, but the public focus on a businesses' bottom-line is not attractive.
As to the PS3, Sony created a false scarcity in this country by not releasing sufficient quantities to meet expected demand of a previously popular product. Sony further limited the availability by releasing through only a few large retail chains. Sony gained a lot of free publicity to their (some say) sub-standard product.
Whether this marketing decision, made in corporate headquarters in Japan, was designed to draw attention away from the inadequacies of their product or if it was to counter the effect of a year of deservedly bad press stemming from their anti-public decisions, we don't know. We can see that they created a news-worthy demonstration of public demand for their product. In doing so, Sony also created perfect conditions for Black Market resellers. The release was attractive to those with a flexible schedule which allowed them to wait days in line to buy a PS3. After release, PS3s were quickly repurchased at twice or triple the $600 retail price.
Sony could have known, should have known and no doubt did know this would happen. They also knew there was a risk of violence and they chose to release the PS3 this way. The stores didn't like it, the police and civil governments didn't like it, but, evidently, Sony liked it. Interestingly, Sony did not create a scarcity in Japan.
Observers and journalists reported that the vast majority of American customers participating in Sony's stunt, were doing so in the hope of making a payday.
Our store was not chosen by Sony for their charade. Even still, we were adversely affected by it.
- When our store managers arrived to open the stores on the day of the release, they were met by an anxious crowd of over a hundred people who had trouble accepting the managers report that we had no PS3 to sell. The crowd stayed for several hours, making it difficult and scary for employees and customers to enter the stores.
- One guy broke through our inadequate security, went to the middle of the computer store, yelling, "I'm not leaving without a PS3!" Police were required to remove him.
- Meanwhile, online, our website was repeatedly hit by hundreds of thousands of searches for 'PS3", "Playstation", "Sony", "Game Players", "Video Games", "Game Consoles" and other related terms. The overburdened site ground to halt several times during the day. Customers looking for items we actually stocked were unable to make purchases, those of us working on the site were unable to do our work. The site was disfunctionally burdened by the PS3 searchers for two days.
- About noon on PS3 release day, a red van pulled up to the curb in front of our store, the guy in the above picture jumped out holding a PS3 box, shouting, "PS3, $4000 cash!". My friend, Toasty snapped and split. Fearing violence, he didn't wait to see what happened.
Now, after a week, it has calmed down to the more reasonable frenzy of New York retail, I don't know if the event is more typical of the American public or of the management of an unwieldy large corporation suffering bad press and failing product lines.
As to the PS3s themselves, the hackers say, they are a fine piece of hardware with bad Sony software. Strip out Sony's operating system, install a specially modified open-source Linux operating system and they say those who paid 2 or 3 thousand dollars to an unauthorized reseller will have a nice machine which can reach the internet, support common communication and media production applications, play and make HD video, play Blue-Ray, HD DVDs and a bunch of online and offline games.
More power to the hackers! They have the right attitude and are pointing the way to the kind of products the public wants.
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