Just this past weekend, the long anticipated video game console PS4 finally hit the shelves of many local retail stores including Best Buy, Future Shop and GameStop. However, the short supplies for this product left many customers empty handed. Many customers were disappointed since they waited in line for hours looking forward to get their hands on the new console on the day of the launch.

Many analysts perceive that the demand for the console during the opening weekend displays a positive sign of future sales in the upcoming months. Though this may be true, I believe that Sony could have executed their supply and inventory distribution to satisfy both their revenue income and consumer demands. They should have had a larger inventory supply during the opening weekend, the reason behind this is because Sony holds a competitive advantage over their long term rival Microsoft by releasing their console a week prior to the XBox One release. By having more inventory they would reduce the number of unsatisfied customers leaving the store empty handed as well as reducing the number of customers deciding to buy XBox One because PS4 was sold out. Though the second part of the argument only applies to a small number of people, it is still significantly relevant because some customers who want both consoles will usually by console first and the other console months or years later.

Extra Update: I tried to see if the PS4 was purchasable directly from the Sony store website so the customers who didn’t get it from retail stores will have another option. Sadly, it is unavailable so maybe another improvement would be to offer online orders as well.

Work Cited:

http://www.huffingtonpost.com/2013/11/15/playstation-4-release_n_4280599.html

http://online.wsj.com/news/articles/SB10001424052702303559504579200310734889426

http://store.sony.ca/gsi/webstore/WFS/SNYNA-SNYCA-Site/en_CA/-/CAD/ViewProduct-Start?SKU=31-PS410036