What is the goal of this?
*Kevin Turner, Microsoft’s Chief Operating Officer, told partners during his Worldwide Partner Conference keynote that Microsoft plans to open its first retail stores this fall. *
What can MS possibly hope to gain here?
Apple has them, but Apple is primarily a hardware company while Microsoft is primarily a software company. So I really don’t know, other than to try and somehow compete with Apple’s retail stores (in some way).
Well, Microsoft owns the PC market space, but they lag far behind in the mobile market. Maybe a zune/mobile windows OS store to try and gain share in those markets?
Good question.
Actually, the first question is why Mr. Turner has such a short memory.
Microsoft had a retail store at the Sony Metreon in San Francisco and the store flopped like a trout on the sidewalk. They opened in 1999 and closed in 2001.
I thought it was a bit odd - why would anyone want to go to a specific Microsoft store to buy a copy of Office or Flight Simulator when they could go to either of two general computer stores that were about a block and a half away - go southwest to Central Computer, or go northeast to CompUSA.
Don’t know if Microsoft also had stores at the other Metreon locations in Berlin and Tokyo.
The guys over at Penny Arcade comment on this quite concisely. It’s their usual brand of insight covered in a thin chocolatey layer of snark:
And, while I’m at it, what Microsoft might have instead of Apple’s Geniuses.
Because Microsoft’s image and brand is at the mercy of OEMs and retailers. This allows them to push their own MS-like vision. MS can showcase existing products, promote new products, put on little classes like Apple does, etc. No need to make a profit, its essentially marketing.
Frankly, I dont blame them. Lenovo, Dell, et al, put on so much crap on their PCs, it makes Windows run like a dog, yet a clean install of Windows is pretty speedy. Retailers often do the hard sell for over priced USB cables, extended warranty plans, and antivirus software suites, etc. If I want an Apple product I can waltz into the Apple store and expect to talk a very knowledgeable person about the product. Sure, he’ll push Applecare on me but its generally a positive experience compared to getting help at Best Buy or Office Depot.
You could say the exact same thing about Apple and the iPod.
The Apple store has three huge benefits for Apple. 1) Brand promotion. 2) They get to display their products in the most advantageous way, and without competitors products side-by-side. 3) They get 100% of the sales $ in their own store instead of just a cut at CompUSA.
The question ought to be why more of the large manufacturers don’t do this.
I think it’s a mistake to characterize Microsoft as merely a software company. That may be where the bulk of revenues come from, but Microsoft makes more from hardware (including Microsoft mice and keyboards, XBox and Zune) than most companies make from all sources combined.
Don’t forget that Apple stores also sell a lot of non-Apple hardware and software, including printers, hard drives, headphones, etc. A Microsoft store could also sell those kinds of products.
Apple stores are also a major component of Apple’s customer service and tech support. The Genius Bar is the first thing I think of when one of my Macs has a problem I can’t solve myself. Apple runs free seminars from its stores to teach users how to do things like check e-mail, build website and edit movies.
Besides which… Microsoft has always emulated Apple. It’s only natural for them to imitate this as well. 
When Apple started its stores, its products were not widely available in many other retail stores, so they weren’t competing with their resellers. Also, Apple products are not widely discounted (unlike most Microsoft hardware and software products). So if I want to buy a Microsoft keyboard, why would I want to buy it at full list price in a Microsoft store when I can get it at a nice discount in Best Buy?
Microsoft makes money from Zune? 
Microsoft’s speciality is being second (or so) into a market space, and out-competing the first entrant by picking up on their oversights, and killing them on price.
My suspicion is they see Apple stores as just another “product space” they can compete in. But people don’t start out the door thinking “hmm, will I go to the Apple store or the MS store for my computing/mobile phone/music player needs today?”. They start out the door thinking either “I want an iPod, I’ll go to the Apple store” or “I want a Zune, I’ll go to the MS store”. But that second thought has never occurred to anyone in the history of the world. Prediction: flop.
They seem to be hoping to gain from association with the Apple stores, perhaps for the same reason I ofteno see Walgreens and Rexalls on the same corners. If it doesn’t work, they could end up the same way as the Gateway stores.
In my former job I did a lot of work with Apple. They see their stores as foremost a place to reinforce and educate about their brand. The selling of products is secondary. That’s why the staff doesn’t hassle you to buy things. They’re explicitly told that their main goal is not to close a sale but to teach people about Apple and give them a positive experience. The idea is to sell people on the concept of Apple.
I assume this is what Microsoft is doing.
I agree with these two. Microsoft revenues will not be affected by the sales of a Microsoft store. The store acts as a marketing and PR device. It gives Microsoft a tangible presence–you can go into the store and talk to Microsoft people. Everywhere else, Microsoft is just a box on the shelf.
It hasn’t even opened yet and it has Dopers talking about it, right? 
Why the Metreon store closed I don’t know, but I’ve been there and I think just about every store at Metreon has closed.
Sure they were. Apple drove a number of their longtime resellers out of business and got sued for doing things like prioritizing shipping to their own stores.
They don’t “own” the PC market, They “own” the OS market.
Dell and HP “own” the PC market.
To an answer the OP, Microsoft is a bully. They are failing their grades, and foreseeing no future. The list of failures such as the Zune, Vista, Soapbox, MSN, BOB, Xbox 360 RROD. They are idiots that’s why. They don’t know how to market… just ask Jerry Sienfeld. They have been a day late and dollar short with every product. Luckily we have solitaire, that and pin ball, are thier greatest achievements in quality products. A monopoly doesn’t count as an achievement.
I blame 90% of all thier recent failure on Steve Ballmer.
Just think how much money Bill Gates could have if MS was not run by idiots.
I wonder if they’ll be able to install game software on an XBOX directly? (I don’t have an easy way to connect mine to the 'net). Might be worthwhile to let me buy MS points there and put software on.
I once read that it made sense to have a Microsoft Store so users could compare side-to-side the different versions of Vista. The sad part is that I have no idea if that was meant to be serious or sarcastic.