Microsoft to open retail stores

ngibson

ngibson

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http://money.cnn.com/news/newsfeeds...h/microsoft_to_open_retail_stores_2009_2.html

Microsoft is getting into the retail business. The company announced today that it's hired David Porter, a 25-year Wal-Mart vet, as vice president of retail stores. He will head up Microsoft's "efforts to create a better PC and Microsoft retail purchase experience" through its own stores.

This is a risky move. Microsoft (MSFT) will be competing with its vast retail channel, which ranges from Best Buy (BBY) to Costco (COST). And last we checked, the retail industry is in the garbage. Even Apple is suffering.

If done right, Microsoft might be able to show consumers the benefits (if any) of having a Windows computer, Xbox 360, Windows Mobile phone, and Zune, all in one place. At very least, they could do a better job than Best Buy at showing off PCs. (We're not sure how well the gurus Microsoft hired last fall to do that at other big-box stores worked out.)

Conceivably, they might convince more people to buy PCs -- or at least to buy newer PCs with Windows 7.

But Porter will have to work magic to get people into a Microsoft store -- the "big-ass table" Surface computer won't be enough. Even Sony's (SNE) retail chain, packed with PlayStations and whiz-bang digital gadgets, fizzled out. Nokia's (NOK) small chain of U.S. stores hasn't done much to improve its market share here. Palm (PALM) shuttered its retail stores last year. And don't get us started thinking about Gateway stores.

If anything, Porter will have to out-Apple Apple (AAPL), whose minimalist, fun retail stores have helped drive sales and market share -- at Microsoft's expense. His pedigree won't hurt -- a few years at DreamWorks after 25 years at Wal-Mart (WMT), where he was an entertainment merchandise manager.
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for their sake, i really hope they don't. just makes them more like apple IMO. If windows really wanted to help the consumer, and really stick it to apple, they'd find a way to integrate a good anti-malware system in windows 7, for no extra cost
 
Damn Swinging on Apple's nuts much?
What will they sell? Zunes, Office and Windows? LOL
 
z4k said:
Damn Swinging on Apple's nuts much?
What will they sell? Zunes, Office and Windows? LOL
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That's exactly what I thought when I read this. Apparently they want to go a Best Buy route "but better" and sell machines with Windows 7 installed. It won't last. From what I read about Sony, their retail stores are taking a big hit this year as well.
 
Sony has much more product then Microsoft does. Still they could save a lot of money and over head by closing retail stores & Let the Best Buys n etc sell the product. I don't see people going to the Sony store to buy a TV.
 
z4k said:
Sony has much more product then Microsoft does. Still they could save a lot of money and over head by closing retail stores & Let the Best Buys n etc sell the product. I don't see people going to the Sony store to buy a TV.
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considering how overpriced sony is...lol:laugh:
 
Apple wasn't the first to open a retail store so I don't see how MS is swinging on their nuts. Gateway had stores back in the day and the article says what they're planning on doing - basically it sounds like they're just trying to expose the customer to Windows 7. This makes a lot of sense since Vista was a marketing failure, although the OS itself is not terrible at all. And IMO you can't compare it to Sony in any way - Sony is unsuccessful in much of their ventures b/c they make the same implicit mistakes over and over again. It still surprises me that such a well established company makes so many stupid moves but that's Sony. MS does quite a bit of market research before they do anything big - just look at the design history that went into the xbox360.
 
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