January 5, 2010

The Microsoft Store unleashed…is it a wise move?

Microsoft Store

While in California during a surprise visit to a friend, I got a surprise of my own. Spotted at The Shops at Mission Viejo, a mall in the Los Angeles suburb of Mission Viejo, is one of the first two Microsoft retail stores; The second store is located in Scottsdale Arizona. Despite my best attention to news and recalling drips of information and rumor, I had not seen much fanfare on a Microsoft grand opening, so I walked in and took a quick look around.

Now one can make a strong argument that the Microsoft store bears a lot of resemblance to a typical Apple store. A number of Window-based computers abound, with expert helpers and user training sessions, all at the ready. So on first glance, it just seems as though there is not a real difference beyond the product itself.

One interesting arrangement is a table size tablet with touch capability. Cameras allow touch response similar to the hand gestures seen in movies such as Minority Report, Matrix Reloaded, and Star Trek. In the video above, gamers move defense satellites against alien probes, with play similar to Missile Command.

Microsoft has a long build out, when compared to Apple, which now has 180 stores worldwide. But it is a wise move from a business standpoint. First, Apple has proven that combining a great retail consumer experience with compelling electronics (iPhone, iPod) alongside equally compelling computers (iMac, MacBook) has provided a strong revenue base and consumer buzz. The result? A stock price that exceeded the $200 mark for the first time in 2009. Of course Microsoft has also introduced consumer products, like Zune and Xbox, and still has the lions share of computer software share and retail space.
But adding retail stores allows Microsoft to continue its appeal to customers and manage its image, as industry interest has shifted from an aw-shucks-it's-just-software focus to developing a number of products that must enhance customers' entertainment and utility.

The introduction of the Google Nexus smartphone also confirms that the big three of software and computing must have a gadget that is potential gateway to other services and product offerings.

Running a retail channel is not easy, as sales must justify the overhead and staffing. Witness the Warner Bros Studio stores, which like Disney, provided clothing and merchandising with themes based on beloved characters like Bugs Bunny and Daffy Duck, as well as then-new characters from the WB network. Started in 1991, Warner closed its stores ten years later.

Do you think Microsoft's entry into retail outlets is a wise move?

 

 

4 comments on “The Microsoft Store unleashed…is it a wise move?”

  1. Of course this is a great move by Microsoft, Windows customers now have a way of actually asking, face-to-face, questions to Microsoft. You missed something important in the stores, the OS/softwaer experience what is installed (or more importantly not installed) on the PC's, the machines are free of craplets, trialware and other non-useful software that just clogs up machines. The Answers Desk, like the Genius bar, except I've found the staff to be friendly and knowledgeable. Not so arrogant as the Genius bar employees have become.

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